I forgotten whether I have previously written about this. But I suppose it is also reasonable for me to talk about this again.

I regularly watch news channels like CNN, Bloomberg, or read finance articles on Yahoo or Google. There are a lot of analysts who comment about the markets and try to rationalize the daily movements.

The disgusting thing about it is that they will find whatever reasons to explain the movements and changed their commentary as they deem fit.

Take for example an increase or expected increase in the FED interest rate.

Theoretically, when interest rates increase this increases funding costs which would decrease company profits. The natural reaction that markets would have is for stocks prices to decrease, due to reduced profits. Or in financial modeling, due to the increase in discount rate, the expected stock price would be lower.

So when markets move down after an expected increase in rates, market …