Comments on: What Kind Of News Influences Stock Prices? Someone Has The Answer http://weakonomics.com/2010/06/24/what-kind-of-news-influences-stock-prices-someone-has-the-answer/ Everything That's Wrong With You And Your Money Wed, 23 May 2012 01:09:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Rob Bennett http://weakonomics.com/2010/06/24/what-kind-of-news-influences-stock-prices-someone-has-the-answer/comment-page-1/#comment-4292 Rob Bennett Fri, 25 Jun 2010 11:49:19 +0000 http://weakonomics.com/?p=4476#comment-4292 My view is that the root reality here is that all price changes are caused by investor emotion. They <i>can</i> be rational. Sometimes are emotions are rational responses to information bits. But they also can be wildly irrational. Any system is going to fail because of it inability to distinguish the one situation from another. Certain words can bring in good results for 20 years and then start bringing in bad results. You need an adjustor that tells you when that change happens. Without the adjustment, you can lose in 20 months the gains of following the machine for 20 years. Rob My view is that the root reality here is that all price changes are caused by investor emotion. They can be rational. Sometimes are emotions are rational responses to information bits. But they also can be wildly irrational. Any system is going to fail because of it inability to distinguish the one situation from another.

Certain words can bring in good results for 20 years and then start bringing in bad results. You need an adjustor that tells you when that change happens. Without the adjustment, you can lose in 20 months the gains of following the machine for 20 years.

Rob

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