It is critical that investors acquire the skills necessary to properly read the news. Simply picking up a mainstream periodical and absorbing presumed factual information is tantamount to a self imposed death sentence. Journalistic trickery requires investors to vigilantly pursue objectivity in order to protect and grow precious capital.
Two weeks ago we showed you an example of this as highly regarded Bloomberg News released the following two stories within a 3 hour period:
This morning we are struck by the following headline which has been written for effect.
How To Profit From This Skill:
We aim to help readers understand how to profit from these observations. New readers should know that rare earth element prices affect the current or future gross revenue per kilogram of product produced by mining firms in this sector. When market sentiment turns negative, it is critical to observe what the actual operating conditions look like for companies in that particular business. In this case, they look incredibly good. The companies we cover have little or no debt, plenty of cash, rich deposits and demand growth for the next half decade.
When unaware journalists cause share prices to decrease in a move that contradicts reality, favored stocks must be accumulated. The inverse is true when you see statements touting the fact that a price rise will never end. Understanding how to objectively read the news and take counter intuitive action can be a very profitable skill.