Quote:
Originally Posted by jollystomper
I find there is an element of MARKET DROPPED 2% OMG ARMAGEDDON IS UPON US emotion in the way it is reported. The stories on the drops all mention how the markets are down this year, for the first time in several years - but never point out that they are still up from 2008-2009, or even from 2015.
...
Edited to add: In sum, bad news sells. Good news does not, so folks tend to look for any bad within the good. Human nature.
|
While there is some greedy manipulation of reporting to drive viewer interest for sure, I think sometimes we're just giving them too much credit.
There is an old joke that "those who can't do teach, and those that can't teach consult."
I offer an addendum: "those that can't consult report"
It would be fascinating for everyone in the financial news media to have to disclose their own investments, savings rate, and financial moves. I suspect these people would by-and-large have horrid financial situations due to both human frailty (the usual problem of not saving enough) and being so close to the news cycles that they try to market time everything.
Throw in their own confirmation bias -- we all want to be right -- and you get a recipe for a feedback loop in the financial news media.
Negative begets negative actions by news employees begets negative confirmation bias reporting more negative news.
Positive beget positive actions actions by news employees begets positive confirmation bias reporting more positive news.
I watch CNBC every day because I find it interesting, but I don't take any actions based on opinions I hear there.