Why I Don’t Read Daily Market Wraps

Updated on November 24th, 2017
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The front page of most financial websites (Bloomberg, Wall Street Journal, CNBC, etc.) will usually have an article recapping the day’s market action. I don’t read them, because they feel the need to attribute random market movements to unrelated economic or political news. You can go to any of the major finance websites and read a recap for yourself, but here’s how most of them read:

Stocks [Rise / Fall], as [Buyers / Sellers] Outnumber [Sellers / Buyers]

By Wall Street Physician

New York [Today’s Date] – Stocks [rose / fell] for a [consecutive days of gains / losses] consecutive day as investors digested [today’s economic data or political news]. [Big name company] lead the market [higher / lower], as they reported earnings that [met / failed to meet] expectations. Investors were also [comforted / spooked] by [name of daily economic data], which showed that [results of daily economic data]. U.S. stocks [followed / did not follow] the lead of European markets, which were [higher / lower] before the opening bell in New York. Volume was [light / heavy], as traders [were on vacation in the Hamptons / actually did work].

“I think that the [bulls / bears] were really in charge today, as the [buyers / sellers] really outnumbered the [sellers / buyers],” said Joe Salesperson, a wealth manager at High Fees Financial Management. “Traders are definitely in [risk on / risk off] mode, given that the markets have [risen / fallen] over the past few days. Investors should [continue to be / start being] cautious about the market over the next few [days / weeks / years], given the uncertainty associated with [insert today’s scary Trump headline].”

Bonds [rose / fell], with the yield on the benchmark 10-year Treasury [falling/ rising] to [X.XX%], as traders felt that it was [more / less] likely that Fed Reserve chairman Yellen will [increase / not increase] interest rates at their next meeting in [date of next Fed meeting]. When bond prices [rise / fall], the bond yield [falls /rises].

Oil [rose/fell] [$ amount] to [current $ price], as OPEC made statements indicating they will [cut production / increase production / manipulate the oil price to whatever they want].

The dollar [gained / lost] strength against rival currencies, with the euro now trading for [EUR/USD] dollars. Currency traders [weighed / ignored] [today’s economic data], and appear to be [more / less] optimistic about future economic growth in the United States and relative interest rates between the United States and European nations.

After the closing bell, [Big Name Company #1] reported that their quarterly earnings [met / did not meet] Wall Street expectations. [Big Name Company #2] reported earnings of $1.01, beating the consensus estimates of Wall Street analysts by a penny, as they have for the past 8 quarters.

Tomorrow, Wall Street will be looking at [new economic data], as well as [what will Trump say on Twitter next?].

“I think physicians and other long-term investors should stop reading daily market recap articles like this one,” said Wall Street Physician, a former Wall Street trader and current physician who blogs at The Wall Street Physician. “By sticking to a balanced, three-fund portfolio of low-cost index funds, you can ignore the market headlines and focus on more important things in life.”

What do you think? Do you read the daily market recaps?

4 COMMENTS

  1. Great article creatively written; I’ve stated these exact sentiments before after ending years of watching financial news, but you’ve captured it all in a perfect post. Doesn’t matter what happens in the markets or why, the pundits can always make up a reason to throw on cable news and fill hours of worthless airtime. It’s just not worth the time investment.

  2. Perfectly written article! Complete with the often-misspelled “lead” (should be “led”) in the second sentence. How many of us missed that gem? It jabbed this old proofreader’s eye like a stick.

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