The Investing Trap: Mistaking News for Insights
Where do the real market insights truly lie? + 🔴[LIVE] New York Call: Navigating Market Cycles: Alpha Hedge AI Algo Portfolio Review 12/13/2024
The Investing Trap: Mistaking News for Insights
Where do the real market insights truly lie?
Imagine this: You’re staring at a stock chart, watching the price climb or tumble, and then you check the headlines. Suddenly, everything clicks: the price movement must have happened because of that news story, right?
But what if I told you that’s completely backwards?
Peter Borish once said, “Prices make the news, not the other way around.” Think about that. Prices reflect the truth of the market in real-time. Not opinions, not headlines, not predictions. Just pure data.
In this post, I want to show you why following price trends is the key to navigating—and thriving—in the chaos of the financial markets.
Here’s the truth: Markets are like a living organism, constantly evolving and adapting. Prices are their heartbeat. If you understand how to read that rhythm, you can cut through the noise, avoid catastrophic mistakes, and make smarter, more informed investment decisions.
Prices Are the Purest Form of Market Data
Let me ask you something: How much do you trust a company’s financial statements?
Now, before you answer, let’s remember what happened in the 2008 financial crisis. Risk ratings for subprime mortgages—entirely fabricated. Or take Enron’s infamous balance sheets—manipulated to the point of collapse.
Prices, on the other hand, can’t lie. They’re shaped by millions of decisions made in real-time—buyers and sellers, fear and greed, hope and despair. Everything is baked into that one number.
If you’ve ever read Michael Lewis’ The Big Short, you know that markets often resist the obvious. But prices? They always reveal the truth. And like Newton’s First Law of Motion, “a price in motion will stay in motion until acted upon by an external force”—like a change in supply or demand.
Volatility Is Just Noise—Trends Are Truth
Here’s the thing: Prices move every second of every day, often in seemingly random ways. That’s volatility. But trends? Trends tell a deeper story.
Think of trends as the language of the market. If the price is climbing, it’s not just because people suddenly love the company—it’s because buyers are collectively overpowering sellers. And that upward motion will continue until the sellers push back with enough force to reverse it.
Here’s a funny thing about human nature: we crave complexity. Warren Buffett once said, “There seems to be some perverse human characteristic that likes to make easy things difficult.” But when you look at a trend, it’s refreshingly simple. It’s there, in front of you, showing you where the market is leaning.
Hope Is Not a Strategy
Now, I know what you’re thinking: “But the market always bounces back, right?”
Let’s talk about hope for a moment.
Maybe you’ve heard people say, “Just hold on—prices will recover.” But what if they don’t recover in time? What if you need that money sooner?
That’s what I call the hope strategy, and it’s a dangerous way to invest. Hope isn’t measurable. It isn’t actionable. And it certainly isn’t reliable.
Instead, what if you could base your decisions on something that is reliable? Prices give you that clarity. They integrate everything—economic fundamentals, political decisions, even insider information—and present it to you in real-time.
I’ve seen people lose everything by clinging to hope. And I’ve seen people transform their lives by following trends. One client told me, “I used to stay up all night, glued to the news, trying to predict the market. Now, I just follow the data, and I sleep better than ever.”
This isn’t just about money. It’s about freedom. The freedom to stop worrying about things you can’t control and start focusing on what truly matters: your goals, your family, your legacy.
Conclusion
So, here’s my challenge to you: Stop chasing the headlines. Stop letting hope dictate your financial future. Instead, start following the one thing that tells the real story: price trends.
The market is a place of exchange, where buyers and sellers come together to set the price. That price doesn’t care about fairness, predictions, or opinions. It just is.
If you want to take control of your financial future, remember this: Prices are the pulse of the market. Learn to read them, and you’ll stop reacting—and start winning.
🔴[LIVE] New York Call
Every business day, we hold a live meeting with our Brazilian clients, called the New York Call, where we analyze the market, our portfolio, and assets on demand. This is an excerpt from the meeting in Portuguese.
With clients in 60 countries, we've included English subtitles to make this content accessible to a wider global audience.
Navigating Market Cycles: Alpha Hedge AI Algo Portfolio Review 12/13/2024
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