akuma587 said:
The news came out yesterday. The stock market did not react negatively to the news even though the numbers were worse than expected. Its like people reacting to a company's earning reports for the quarter. You can't have a negative reaction to published numbers before those numbers are finally published. I'm not talking about their reaction to the economic contraction in general but their reaction to what those numbers ultimately were.
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True. But the problem with the market of late, in my opinion, is not if the news is good or bad, but if they don’t know what the news really means.
GM killed Pontiac, the market went up.
Chrysler files for bankruptcy, the market went up (or stayed the same).
What kills the market is uncertainty, not bad news. The government pouring money into a system, making in unclear where the good investments are or aren’t, is what has made the market do these crazy things. Not bad news.
The market has reacted already to the slow in the economy. Telling the market what it already knows should have little impact.
