Barry Ritholtz, Columnist

A Good Story Doesn't Make a Great Investment Idea

We all love a well-told yarn, though it might be a money-loser.

April 2, 2018 at 4:00 PM UTC

Barry Ritholtz is a former Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”

We learn at an early age.
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The return of volatility in the first quarter versus 2017 was our focus last week. Some interesting pushback followed the premise that prices seem to ignore news sometimes and at other times hang on every headline.

My explanation: Most people have this correlation backward. Contrary to widespread belief, the news does not drive markets or prices; rather, it is the markets that drive news. As I wrote: