It annoys me, and I believe it gives the average investor the wrong understanding of why stock markets act as they do, when the media and market commentators dont talk about why markets go up and down.
Stock market corrections (selloffs) are born out of good news, and rallies are born out of bad news....think about it like this with these examples:
- the housing market crash of 2007-2008 occured because the housing market performed so well leading up to that
- the market rally over the past several years came as our economy hit rock bottom and then started to slowly recover
- the historical stock market crash in 2000 that lasted for 5 years occured because of the incredible market advance of the late 90's
My point in writing about this is that education and understanding go a long way in helping overall investment performance, and I believe the more knowledge we (investors) garner the better opportunity we have to succeed.
