Do markets only care about "natural language"?

[Anonymous]

Do markets only care about "natural language"? If the president says X markets move. I don't think people are actually making these buying/selling decisions no way. It seems to me that the buying/selling process is automated to only care about "natural language"

Inflation doesn't matter
Tariffs nah they don't have any impact
Shutdown oh who cars
Slowing labour market totally irrelevant
AI yes yes yes

What the hell is going on?

[Anonymous]

Insider Trading. Ie money laundering that is all the markets care about.

[Anonymous]

I think you don’t know what “natural language” means.

[Anonymous]

Anonymous wrote:I think you don’t know what “natural language” means.

+1

but back to OP's question -I believe there are so many more people participating in the stock market compared to a decade before. There have been folks who pulled money out in April, or even earlier so they invest when there is a dip. If many people buy the dip, then the dip is very shortlasted. Also, I feel there are many more buy and hold folks. Early in my career, I did a lot of trading selling and buying (mostly in 401k but also in brokerage) based on the market news. Now, I just shrug when market goes down and do nothing. My auto investments in brokerage just happen on the same schedule. I just don't check my portfolio value on the days when market is down significantly. I wait till the market highs (or near highs) to check my networth. It works for me.

My unpopular opinion is that S&P is the safest investment (inflation adjusted) out there as long as you hold for long time. We are still 6 years from retirement, when we get closer we will build a cash reserve for 1-2 years, so we dont have to sell stocks for our living expenses when the market is down. Otherwise for the next 5 years, I welcome all dips as buying opportunties!

[Anonymous]

The stock will crash again it's not a matter of if but a matter of when. However, stay the course!

A lot selling/buying is done by very sophisticated computer program. Natural language processing looks at text data and derive insights. And it does so at incredible speed.

The other reason why the market keeps going up is because the US government and FED will always bail out wealthy investors. So they will always take risks. They will always invest crazy amount of capital.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think you don’t know what “natural language” means.

+1

but back to OP's question -I believe there are so many more people participating in the stock market compared to a decade before. There have been folks who pulled money out in April, or even earlier so they invest when there is a dip. If many people buy the dip, then the dip is very shortlasted. Also, I feel there are many more buy and hold folks. Early in my career, I did a lot of trading selling and buying (mostly in 401k but also in brokerage) based on the market news. Now, I just shrug when market goes down and do nothing. My auto investments in brokerage just happen on the same schedule. I just don't check my portfolio value on the days when market is down significantly. I wait till the market highs (or near highs) to check my networth. It works for me.

My unpopular opinion is that S&P is the safest investment (inflation adjusted) out there as long as you hold for long time. We are still 6 years from retirement, when we get closer we will build a cash reserve for 1-2 years, so we dont have to sell stocks for our living expenses when the market is down. Otherwise for the next 5 years, I welcome all dips as buying opportunties!

Completely agree. My approach is the same. Most of my investments is in S&P funds and I keep contributing into them on monthly schedules. Spare cash goes into a separate pile and whenever there is a dip, I move some of it into the funds. I am 20 years from retirement and the goal is to have at least two years of cash for living so I won't need to tap into the investments if circumstances are down, allowing me to ride out any bear markets. I also plan to always have two years worth of living expenses sitting in cash at any time during retirement, withdrawing from the funds to keep this pile going as I spend it. The rest of the investments will continue to grow (hopefully) untouched.

[Anonymous]

Economic term is "Keynsian beauty contest".

https://en.wikipedia.org/wiki/Keynesian_beauty_contest

Only sentiment matters.