Home > Education > How does media explain market moves?

How does media explain market moves?

Tuesday, December 8, 2009 Leave a comment Go to comments

Today was an interesting day. The markets suddenly spiked up in the afternoon and I saw TV analysts scratching their heads trying to explain the market moves!

It is so easy for media guys to explain the market moves- If Asia is down and our markets are down then say that we are following Asian markets. If European markets are in the green and Indian markets are in the positive territory, then simply explain it by saying that markets are taking cues from Europe!

Today’s spike could neither be explained by Europe or Asia. That’s why all the experts were running for cover. Finally one of the experts pointed out that markets are rising because of India’s strong GDP number!

That way every investor can explain each and every move in the market.

So do you really think these media channels help take you take better investment decisions? Unfortunately many of the gullible investors take these TV commentators to be great financial experts and lose their shirts in the markets by following their advice!

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Categories: Education
  1. frank
    Thursday, December 10, 2009 at 1:01 pm

    That spike was because of a specfic statement in parliament by Fin min at 1.30 pm

    • Thursday, December 10, 2009 at 6:40 pm

      Then why did the markets sustain at higher levels? Usually such spikes are short lived!

  2. Rakesh
    Thursday, December 10, 2009 at 9:44 am

    At least better than you who have some answers. You just post questions =))

    • Thursday, December 10, 2009 at 6:44 pm

      Intelligent people learn more from questions as they try to find their own answers! Media just gives you “ready made” answers and many of those answers might not be right for you as an investor!

  3. Raman
    Wednesday, December 9, 2009 at 11:54 am

    I think it was due to short covering of previous sessions…

  4. Murtaza
    Wednesday, December 9, 2009 at 11:48 am

    Hi Sage,

    Long time … actually wanter to ask you abt JSW Energy IPO … worth it?
    Thanks

    Murtaza

    • Thursday, December 10, 2009 at 6:53 pm

      Looks decent. One of the better looking IPOs primarily because of their strong execution capabilities.

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