Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 25 May 2017, 07:07

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Finance guys, explain this to me!

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
VP
Joined: 28 Feb 2008
Posts: 1323
Schools: Tuck
Followers: 6

Kudos [?]: 127 [1] , given: 6

Finance guys, explain this to me! [#permalink]

### Show Tags

08 Dec 2008, 19:01
1
KUDOS
Every time the market goes up or down, the media seem to love to assign some reason for it.

Take the upswing today:

"NEW YORK – The stock market showed renewed confidence Monday, extending its rally and lifting the Dow Jones industrials to their highest level in a month following President-elect Barack Obama's promise to increase infrastructure spending to lift the economy."

I read another article that said the upswing was due to the fact that the Big 3 bailout looks like it will happen.

Is it just me or does the media just look for a reason after the fact?

RF
_________________
SVP
Joined: 11 Mar 2008
Posts: 1633
Location: Southern California
Schools: Chicago (dinged), Tuck (November), Columbia (RD)
Followers: 10

Kudos [?]: 204 [0], given: 0

Re: Finance guys, explain this to me! [#permalink]

### Show Tags

08 Dec 2008, 19:39
I would not disagree with you there.
_________________

Check out the new Career Forum
http://gmatclub.com/forum/133

Senior Manager
Joined: 26 Jan 2008
Posts: 263
Followers: 4

Kudos [?]: 109 [0], given: 16

Re: Finance guys, explain this to me! [#permalink]

### Show Tags

08 Dec 2008, 19:45
refurb wrote:
Every time the market goes up or down, the media seem to love to assign some reason for it.

Take the upswing today:

"NEW YORK – The stock market showed renewed confidence Monday, extending its rally and lifting the Dow Jones industrials to their highest level in a month following President-elect Barack Obama's promise to increase infrastructure spending to lift the economy."

I read another article that said the upswing was due to the fact that the Big 3 bailout looks like it will happen.

Is it just me or does the media just look for a reason after the fact?

RF

Exactly my thoughts (kudos for bringing this up ). I figure a good number of these articles are probably written by "generalist journalists" who're not very macroeconomics savvy..
_________________
VP
Joined: 11 Dec 2006
Posts: 1430
Location: New York, NY
Schools: NYU Stern 2009
Followers: 41

Kudos [?]: 222 [0], given: 6

Re: Finance guys, explain this to me! [#permalink]

### Show Tags

16 Dec 2008, 15:06
It is more that the typical reader and writer would like to assign reasoning behind a stock market move. The sentiment driving the market is somewhat more complicated and aligned to many things, but they prefer to give a form of explanation.

This probably comes from the fact that so many people have an interest in where the market is, probably in a passive manner, and due to their 401k. Saying the market moved up today without a conjecture as to why would leave the average investor highly nervous as to why this happened (especially now, at heightened observation as it has been seen to go down a lot and people are sensitive - historically ups did not need explained as much).

The familiarity with the gross over-simplification of what drives finance will be very apparent to anyone who has done a relatively quantitative job of any sort when asked to explain what they do. You make something up completely simple to stop them asking more questions.
_________________
CEO
Joined: 17 May 2007
Posts: 2959
Followers: 61

Kudos [?]: 601 [0], given: 210

Re: Finance guys, explain this to me! [#permalink]

### Show Tags

24 Dec 2008, 05:57
This type of news article are among many examples of "idiotic markets reporting" that is quite widespread. Every time there is a market move you hear a reason associated with it. "US stocks fall on weak housing data" - "Gold falls on demand concerns" - "Oil slides on weak economic news" - "Dollar weaker on softer gold" ... what the hell ? The journo usually has no idea about the real reasons.

3underscore hits the nail on head with his explanation as to WHY this type of reporting is widespread.
Re: Finance guys, explain this to me!   [#permalink] 24 Dec 2008, 05:57
Similar topics Replies Last post
Similar
Topics:
This video made me laugh 2 19 Feb 2009, 19:45
3 Intro to finance? 21 23 Mar 2016, 10:56
AIB- Dublin vs New York stock prices- Can anyone explain? 5 09 Nov 2008, 17:43
Kerviel was made to be the fall guy.... 0 23 May 2008, 15:15
10,000 finance job cuts forecast 8 06 May 2008, 22:47
Display posts from previous: Sort by

# Finance guys, explain this to me!

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

 Powered by phpBB © phpBB Group and phpBB SEO Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.