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The Media

October 23, 2012 – 5:19 pm

Have you noticed the constant drum beat of bad news coming from the media? They are beside themselves with dire predictions of looming disaster. They trot out pundits who tell us that the next stock market crash is just around the corner. These same pundits will eventually be correct. All through the 1990’s there was a very famous market economist/investor who wrote books on the coming crash that eventually showed up in 2000. For 10 years he was wrong but that did not stop the media from interviewing him every time there was a correction in that decade and he would faithfully spout his doomsday prediction. For ten years he missed the staggering bull market before he was eventually proved correct. It appears it is happening again.

This is not to ignore problems in both the U.S. and the world economies, but isn’t there always something to worry about? Also, our elections and the fiscal cliff are just around the corner, more issues to worry about. Yes, problems abound and they will continue to abound. On the other hand recent economic statistics point to improvement here in the U.S. but the problem with statistics is that sometimes they get in the way of the popular media agenda. By the time the statistics clearly show improvement or for that matter deterioration the media will be playing a catch up game. Currently, the media has decided to report on the dire consequences of the day and ignore the improving housing market or increasing retail sales, and improved industrial production. They like the rise in jobless claims with the resulting lack of jobs. To be sure these data points are very important, but a little balance is in order.

Good news does not sell as well as bad news.

Good Trading
Steve Peasley

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