Categories: OLD Media Moves

Weisenthal: Why covering the markets is fun

Joe Weisenthal, the executive editor of Business Insider leaving for a job at Bloomberg Media, writes Wednesday about why he enjoys covering the financial markets.

Weisenthal writes, “Now it’s obvious that for a markets reporter, volatility makes for better stories. This past summer, when there was basically no movement in stocks, interest rates, and currencies, there wasn’t much to stay. When the volatility surges, the stories flow.

“Also weird things sometimes happen, and relationships you’re used to seeing start to go in reverse.

“Now lately, what you’d expect, is that when good economic data gets reported, the US dollar rises. Why? Because strong economic data is seen as bringing forward the first interest rate hike. And higher interest rates tend to lead to stronger currencies. (And anyone should be able to understand this. You’re going to want to put your money in a currency that pays a higher interest rate, all things equal).

“Anyway, the flipside is weak data weakens the currency, since that’s seen as pushing Fed rate hikes further into the future.

“But when it gets really interesting is when people REALLY freak out about the economy and markets. While market panics are seen as delaying Fed rate hikes, the US dollar tends to perform very well in these environments, because it’s a safe haven. When people panic they want CASH. And they don’t want just any cash. They want the one currency that’s dominated the globe for ages and ages and that’s the dollar. So bad news, rather than being seen as negative for the currency becomes a positive. Cause everyone just wants safety.

Read more here.
Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.

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