We are bombarded with thousands of news articles each day about companies, economic events, and more, but only a small portion of this is relevant or should be the basis for a trade or investment decision. Quarterly earnings reports, industry trade news, analyst upgrades and downgrades, and economic reports are among the few types of news that require immediate action. The bulk of financial news is just incremental information, not important enough to affect the bottom line.
Moreover, the majority of predictions never come true. This makes most news irrelevant in the long run. Unlike amateur bloggers, professional journalists can dig deeper into topics and present a more accurate view. For example, if a financial newspaper predicts that the Dow Jones will fall by 10%, it’s likely to recover some of its losses.