A tough part of an investment analyst's job is forecasting change, especially trying to predict when that change will occur. What makes it difficult is that at any given time, the odds favor a trend that’s in force remaining in force. In its early stages, it’s unclear whether a developing trend will last. But once it takes hold, once it gets its sea legs and gets used to its surroundings, it’s usually reluctant to go away.

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February 12, 2001
15 Truisms to Trust
By Dick Davis

The perverse nature of the stock market precludes hard-and-fast rules. Yet hard-and-fast rules are just what many Wall Street whizzes peddle. Investors should beware. One day's market truth is often the next day's market myth -- and tomorrow is when you'll want to cash in your chips. So what should wisdom-seeking investors do? Trust the truisms that have stood the test of time, a good, solid chunk of time, not a one- or two-year span. Fifteen years ago, when I was writing the Dick Davis Digest newsletter, I compiled for a speech 15 observations about the market that still ...

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May 2008
The Stock Market and the Media: Turn It on, But Tune It Out
By Dick Davis

The following excerpt from The Dick Davis Dividend was published in the May 2008 issue of the AAII Journal

Investors are faced with a daily barrage of business news. There’s keen competition over who can break the story first. The clear inference is that the news matters—that keeping abreast of the news, especially as it relates to one’s holdings, is one of the keys to investment success.

I disagree.

I believe one of the worst things that can happen to a long-term investor is to be instantly and totally informed about his stock. In most cases, spot news fades into irrelevance over time.

What’s relevant is what the market decides to do. The news follows the market, not the other way around.

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