The big question is what is noise here? Forget about the fundamental side. Prices of securities may find its fundamental values in the long run but it won't work in the short run. Ultimately, in the short run, what we thought of information is noise and what we thought of noise is information. Just simple as that
This is what I have been saying all along. ‘Why are boys pushing this narrative ‘ is the question when I read anything The title is a misnomer. You don’t ignore the noise. The noise is not random. You just need to ask the right questions to get the real information.
I use CNBC as a barometer: "news" means stress and angst and increasing vol. "fluff" or opinion or golf or cooking recipes or the latest designer whisky means calm, optimism, decreasing vol. The noise *is* the signal, and just by listening (a'la 'sonic wallpaper'), you can tell whether the market will be up or down for the day....
There was an article on Goldman Sachs where they checked on how accurate were their calls. When Goldman Sachs said to buy, when Goldman Sachs said to sell. Over 90% accuracy that their calls were wrong! Now, that is noise. Doing the opposite would have been the right decision. Now, when I see hacks on Cable TV shows like CNBC say the market crash is imminent, I ask myself the question, do my opinions align with the CNBC hacks? If it does, then, it confirms my suspicion that I am wrong and probably, by a mile. If my views are the opposite, I know that I am 100% right.