Exante's Patrick J O'Brien states that Professional
Investors are leaps ahead of Financial Pundits when it comes to
affirming their investment choices.
Professional investment firms tune into financial news channels
like CNBC or Bloomberg for background noise and atmosphere, rather
than as sources for actionable information; by the time the
financial news media broadcasts a headline that might actually have
market impact, the professionals have already received that
information using more sophisticated methods.
For example, most investors monitor major economic news and
indicators by subscribing to real-time news services.
High-frequency traders go many steps further. Their algorithms are
plugged in directly to news sources, parsing the feeds for
actionable data that automatically trigger buy and sell orders.
