How to read financial news
Due to the nature of my role with Livewire, I spend a large amount of time reading financial news each day. While this is something I genuinely enjoy, my time is precious, so I need to be efficient with what I read. So when the CFA (Chartered Financial Analyst) Institute recently put out a blog entry titled 'How to read financial news,' it caught my attention straight away. They've approached five CFA charter-holders and fund managers for some insights into how they efficiently process financial news. What stood out to me, was the three questions to ask when looking at an article: 1) Is the article based on data or opinion? 2) Is it descriptive of past conditions or predictive of the future? 3) Does the article have a testable hypothesis? Answering these three questions can go a long way to testing the usefulness of the story you're reading. In the full article, they provide some 'best practice' tips for how to put this into action. (VIEW LINK)
2 topics