{"id":8393,"date":"2019-12-23T19:26:29","date_gmt":"2019-12-23T19:26:29","guid":{"rendered":"https:\/\/zackspcg.com\/blog\/?p=8393"},"modified":"2022-02-26T13:06:51","modified_gmt":"2022-02-26T13:06:51","slug":"negative-news-has-diminishing-power-of-stock-prices","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/negative-news-has-diminishing-power-of-stock-prices\/","title":{"rendered":"Negative News Has Diminishing Power of Stock Prices"},"content":{"rendered":"\n

In 2015, weak growth numbers in China were worrying\ninvestors. There was also China\u2019s decision to devalue their currency, which\nsent equity markets into a brief tailspin. China was posting weaker-than-expected\nmanufacturing and export figures, and the currency devaluation felt like a\ndesperation move to revive growth.1<\/sup> <\/p>\n\n\n\n

In 2016, investor fear shifted to the second coming of a\ncredit crisis, as banks were starting to write-off non-performing energy loans\nthat went bust after the steep drop in crude oil prices in 2014. Germany\u2019s\nbiggest bank, Deutsche Bank, saw the cost to insure its debt soar by over 180% in\njust a three-month period, and Credit Suisse and other major European banks\nwere reporting similar squeezes. Many prognosticators, at the time, were\nwarning of crisis in banking.2<\/sup><\/p>\n\n\n\n

Go back to 2011 (which it\u2019s worth reminding was part of the\ncurrent bull market), and all talk was centered around the \u2018European Debt\nCrisis,\u2019 with worries of Europe\u2019s impending collapse. In 2013 and 2014, the\nnews spent months covering the fiscal cliff and the repercussions it could have\non the economy. <\/p>\n\n\n\n

In all of these cases, the stock market endured volatility\nalong the way, sometimes with sharp, steep, and scary declines. But I believe the\ncrucial understanding investors should draw from this walk down memory lane is,\ndid this volatility ever last long enough\nto harm long-term returns?<\/em><\/p>\n\n\n\n

___________________________________________________________________________<\/em><\/p>\n\n\n\n

Bearish Sentiment Does Not Mean a Bearish Future<\/a><\/strong><\/p>\n\n\n\n

I want to\nemphasize the importance of avoiding the urge to get caught up in negative\nheadlines. As I look to 2020, I see this bull still going strong. My\nrecommendation is to base your investing decisions on hard data (not negative\nheadlines), and stay focused on economic data releases, earnings reports, and\nother economic factors!
\n 
\nTo help you do this, we are offering all readers\na look into our just-released January 2020 Stock Market Outlook report.<\/strong>
\n 
\nThis report will provide you with our forecasts\nalong with additional factors to consider:<\/p>\n\n\n\n