An anonymous former Goldman Sachs banker has posted an item on Business Insider on how to spot a clueless financial journalist.
The ex-banker writes, “Here’s a hint for anyone who follows financial news but who has never worked in the industry: Markets never move in response to a rating agency change.
“Never.
“Ever.
“Markets move in anticipation of news, months or weeks ahead of a change in credit quality. Often the ratings agencies observe a market move which prompts a query on their part, and possibly the rating agencies often have an inkling of the change in credit quality on their own.
“But the ratings agency review process itself also takes days or weeks. Which, in the continuous feedback loop of world markets, may itself prompt a market response.
“Markets are forward-looking, anticipating credit quality changes, as well as ratings agency changes. Markets never respond to credit ratings changes.
“Want to spot a journalist who doesn’t know what he’s talking about?
“Look at the one ascribing a market move to a rating agency change.”
Read more here.
CNBC senior vice president Dan Colarusso sent out the following on Monday: Before this year comes to…
Business Insider editor in chief Jamie Heller sent out the following on Monday: I'm excited to share…
Former CoinDesk editorial staffer Michael McSweeney writes about the recent happenings at the cryptocurrency news site, where…
Manas Pratap Singh, finance editor for LinkedIn News Europe, has left for a new opportunity…
Washington Post executive editor Matt Murray sent out the following on Friday: Dear All, Over the last…
The Financial Times has hired Barbara Moens to cover competition and tech in Brussels. She will start…
View Comments