Why Investors Should Ignore the Fed, Interest Rates and Most News

The stock market often makes big moves based on short-term news. When Jerome Powell mentions that interest rates may continue to rise to fight inflation, the Dow and Nasdaq generally fall — unless they don’t because people expected worse or assumed the news had already been priced into the market.

It’s an inexact science where people make reactive moves that send markets up or down based on some kind of prevailing wisdom. Basically, people take short-term news and confuse it to make long-term sense.

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