Continuing with the Eight Traits of the Insightful Investor -
The Insightful Investor looks beyond the headline.
There is no substitute for reading carefully and critically. Today's news provides a fine example. There is an interesting research note from Bank of America Merrill Lynch. (Am I the only writer frustrated by needing to use this mouthful in a plain citation? Only a few years ago, "Mother Merrill" was commonplace - Oh, well).
The research note is generally bullish on stocks and the economy, while sounding a cautionary note on sentiment. This is consistent with what most of us who engage in balanced commentary are seeing. The note expresses some concern about whether there are possible future speculative excesses. Not now - future. Briefly put, watch out for the possible upcoming blow-off top.
This is also a theme for the level-headed Schwab Chief Investment Strategist, Liz Ann Sonders, who always seems to have investors in mind. She is not worried about the current level of stock prices, but wonders what might happen in a "melt up." She cites other good sources with the same concern.
To grasp the significance, the reader needs to look at the content of two stories, summarizing the same research. Here are the titles:
Published at 2:28 EST Read more: here.
BofA: 'Escape Velocity For The US Is Tantalizingly Close' - Here Are The Three Missing Links
Published at 3:59 EST. Read more: here.
Three things that could trigger a near-term correction: B. of A. Merrill Lynch
Here is the stock chart for the day:
There is an overwhelming incentive for commentary to fit the day's trading. No matter how well-considered your analysis, you just seem out of touch and WRONG.
The point of this post?
The same information is portrayed as conveying a different message depending upon the short-term context, sometimes measured in minutes.