Media promotes negitivity.

World markets fell on friday. As soon as there was a wiff of a hung parliment on Saturday, the media had a feild day. Their stories were of doom and gloom for Monday. They predicted a big fall on the Australian market. Instead trading was flat.

The question is: To what extent does the media report facts and, how much media fear affects the market?





Johny.

 

Seems it doesn't take much.. of course the media saying that trading would be flat for the next few months while the market goes sideways and waits to see what the US and rest of the world does... isn't very interesting, people want to ooh and ahh.

Actually was looking for posts on tonights four corners - doom and gloom about US.

 

The media is in the business of selling newspapers and winning eyeballs. And emotions sell. But of course emotions influence the markets more than facts.

That said in the long run markets reflect figures. So at the end of the day I think the media primarily just increases short run volitility.

As for the long run. What will be will be.

I saw the back end of it and it was good to see bears like Celente, Schiff, etc that made a lot of BIG and ACCURATE calls over the last 5 - 10 years get a bit of space on prime time. It makes for a nice change to having to listen to central bankers, commercial bank analysts, credit rating agencies, governments, etc who got a lot wrong over the last 5 - 10 years.



Whether they continue to be right - time will tell.