Most News Is Noise

I view most financial news as just being noise, which is why you will rarely see me discussing the headlines of the day on the site. The headline that has taken the market down about Greece leaving the EU could be big if it turns out to be true.

This scares me. We saw similar headlines with the S&P 500 at lower levels that did not pan out. It is costly to be spooked but I am being cautious and not adding into this downturn as I would be if we were down on some other headline.

2 comments:

Anonymous said...

Just curious, why would the news be big? What would be the impact? Thanks.

Tsachy Mishal said...

I think that other PIIGS and European banks would fall like dominoes. The EU has already lent $80 billion to Greece. If they default taxpayers in other countries will be left with the tab. Once Greece falls debt markets will shut down and there will be banks and other countries lined up for bailouts. Good luck getting those by taxpayers.