Headlines Sell Drama

Headlines convey concern while a message from the market supports a coming turn. This is not revealed as an aid to time the market but rather an illustration of how drama rather than analysis sells headlines. While drama encourages clicks, it is of little use in the world of investing profits.

New York Composite Index:


Headline: Stocks take another pounding amid oil price fears

Stocks took a pounding Wednesday as oil prices edged higher once again amid concerns over how the crisis in Libya will end now that the oil-rich North African country is effectively split in two.

Insecurity has spread through markets as the international community remains at odds about how forcefully to intervene in Libya and the regime of longtime leader Moammar Gadhafi claws back some ground lost to the rebels.

Source: finance.yahoo.com