Stock market news can be helpful. But it can also be harmful.
It may be useful for understanding conversations surrounding the stock market. For example, I’ve noticed that positive reports on consumer spending and employment tend to result in day-over-day market gains. Knowing that an increase in my portfolio’s value is due partly to happy investor sentiment and general economic well-being, not necessarily to my genius, can keep me from being overly confident.
But commentary disguised as news can lead me astray. For example, I’ve sold shares at what was touted as a good price only to see the price grow 50% in the subsequent 12 months. In addition, I’ve had to fight the desire to completely cash out after reading doom-and-gloom predictions; my energy should be spent devising strategies and taking firm actions, not fretting about the future.
Still, consuming stock market news has helped me to learn how markets often react to certain types of news in the short term and whether these newsworthy events impact me in the long term. Having these insights has made me a more relaxed investor.
Learn about the information I find useful and my favorite place to get stock market news: