
Check out this image just taken on msnbc.com.
Every day for the last 6 months, when I’ve looked at these arrows, they’re always red and pointing down. And every day there is plenty of hype about how the stock market is tanking, and “bear territory”, and the-worst-since-19XX statements and on and on.
However, in the above example, you can see that this afternoon the Dow has gone up (my math isn’t 100% correct) around 2%. Wait a minute… You know how many headlines I’ve seen that involve the phrase “dropped 1.1%” over the last 6 months? So what headline do we have now after a 2% gain? “Drop in the price of oil boosts stocks.”
If you look 3 storys down, there is a bit of bad economic news: “Consumer prices surge 1.1%, worse than feared.”
Wait a minute… a negative increase of 1.1% is a SURGE, but a good increase of twice as much, around 2%, is a BOOST?
<Leaning forward, taking off glasses> News people… Look. You are a big part of what happens in the stock market. When you hype the negative, you actually contribute to the stock market tanking, because people get scared by your doom-and-gloom and invest less. Now, I’m not asking you to try and assist the stock market, but at least be balanced. If you run three stories about Bear markets after a 1% drop, then run three stories about recovery after a 2% gain. Good news just doesn’t sell though, right?