Markets plunged around the world on Friday and Monday after U.K. voted to leave the European Union. While working from home Friday, I spent much of the day watching financial television, skipping between the three main financial news networks.
What I heard was surprising: A parade of folks coming across the screen, saying the oddest things about Brexit. If you are not a regular viewer, your nonsense detector becomes more sensitive. Mine was lighting up as if I were at a flat earth convention.
The philosophy of less noise and more signal is never a bad thing for investors. This is especially true if your perspective is long term, and you don't actively trade in and out of stocks.
So as a public service, I offer:
The Unofficial Pundit-to-English Translation Guide
When a pundit says, "We suggest reducing exposure."
They really mean, We had bet the Brits would vote remain.
When a pundit says, "I'm not a foreign policy expert, but…,"
They really mean, Prepare for a useless, uninformed opinion.
When a pundit says, "The macro forces at work…"
They really mean, I'm inventing a reassuring narrative.
When a pundit says, "The smart money is betting…"
They really mean, I take no responsibility for this next bit of foolishness.
When a pundit says, "It has long been our position…"
They really mean, That's my story and I am sticking to it, even if it's wrong.
When a pundit says, "Our analyst says…"
They really mean, The guy is going to be out of a job soon.
When a pundit says, "Our clients are very concerned about…"
They really mean, There goes this year's bonus.
When a pundit says, "We don't see a recession."
They really mean, We didn't see the last recession coming either.
When a pundit says, "The current trend is…"
