Turn on the financial news on any given day and you’ll hear a steady stream of explanations for why the market moved up or down. A report came in stronger than expected. A geopolitical event rattled investors. Interest rates may rise or fall.

The message often implied is that if you simply stay informed enough, you can anticipate what the market will do next.

Unfortunately, markets don’t work that way.

One of the biggest dangers for investors is making decisions based on headlines. News can feel urgent and important, but the relationship between major events and market outcomes is often far less predictable than people expect.

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