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That is not true. Markets are moved by traders not economists. Professional traders have a very skeptical view of economists, because economists are simply wron
by rapsey 1y ago
That is not true. Markets are moved by traders not economists. Professional traders have a very skeptical view of economists, because economists are simply wrong so often about the future. Economists from the world bank and such institutions are usually on the wrong side of forecasting for instance.
For instance Scott Bessent opinion:
"I will take the market-based indicators over the so-called 'experts' all the time! That’s how I made my 35-year career, was listening to the market."
- krona 1y agoDistal causes vs proximate causes. Sure, you need traders to move the markets, and if that's good enough for Scott Bessent, good for him.
- elif 1y agoThe traders are all operating within the windows established by the policy choices of economists using fake money generated by economists to satisfy their own invented metrics. And traders are not themselves predicting the future as you put it, but they are predicting the future sentiment of other traders.
- halfcat 1y ago> Markets are moved by traders And traders are moved by the Federal Reserve’s interest rate decisions