By Dan Denning – Southbank Investment Daily (Great Britain)- Here’s a prediction: the rally in sterling will last longer than expected and the sell-off in stocks will be short-lived. Mind you, this is heavily influenced after reading Charlie Morris’ latest The Fleet Street Letterand Akhil Patel’s weekly Cycles, Trends and Forecasts update. Cycles, Trends and Forecasts will be published later today and The Fleet Street Letter tomorrow, by the way.
If Charlie and Akhil are right – and both have some charts and academic data to back them up (some of which I’ll show you tomorrow) – then you’re going to have to trust markets more than newspapers to profit. The news is bearish. It makes people feel bearish. And when people feel bearish, they act bearish.
This is what’s profoundly hard about thinking for yourself. You have to be mindful of your own cognitive biases. And you have to keep a clear head, which generally means not reading any of the garbage that passes for news. Incidentally, did you know there’s a rubbish tip just on the other side of the Financial Times building along the river? I never made the connection until today.