Posted by: jhamon | June 1, 2009

Don’t Trade the News, Trade the Market

GM files for bankruptcy, Israel launches its largest ever military exercises, there’s dangerous rumbling in North Korea and the market is up.  The S&P 500  advanced nearly 2.6% on the day. Huh?

That’s why our focus is never on how we feel, or the tenor of the news or “a bit of undigested beef,” but on what the market is actually doing.  If the market is advancing and our stocks are up, we stay long and strong, no matter the macroeconomic news.

Turn off CNBC and focus on what price is doing.

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