In his book The Guru Investor, John Reese writes: "Every day on Wall Street, something happens that makes people think they should invest more money in the stock market or, conversely, makes them pull money out of the market. Earnings reports, analysts’ rating changes, last month’s retail sales report – all of these things can send the market into a sudden surge or precipitous decline. The reason: people view each of these items as a harbinger of what is to come. "On the surface, it may even sound reasonable to try to weigh each of these factors when considering which way the market will go," says Reese, "but when we look deeper, this line of thinking has a couple of major problems. For one thing, it discounts the incredible complexity of the stock market. There are so many other factors that go into the market’s day-to-day machinations ... inflation readings, consumer spending reports, economic growth figures, fuel prices, recommendations of well-known pundits, news about a company...
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