Bad news sells
Last week’s headline you didn’t see
Australian shares gain more than $60,000,000,000 (that’s sixty billion!)
The old newspaper editor's adage is that "bad news sells" and this has been demonstrated clearly in the financial media over recent weeks. Here are a couple of examples:
"The Australian share market has lost as much as $60 billion in value as a fresh crash in Chinese stocks drives heavy falls around Asia." ABC, 24 August
"ASX set for a fall as global markets smashed overnight" Australian Financial Review, 2 September.
The negative media reporting focusing on losses”, “smashes” and “crashes” is so relentless that it might come as a surprise to find that the Australian share market actually gained well over $60 billion last week!
While negative media reporting is nothing new, what is new, or at least increasing, is the volatility in share markets worldwide.
Volatility by definition has downs AND ups. So while the market volatility continues, you can expect to see even more negative reporting – but you can’t expect to see too much good news in the media.
For a long-term investor, this media reporting is really just noise – and in a recent blog my colleague Jason Calleja – explains how investment noise can be the enemy of financial success.
At FMD we focus on providing our clients with a diversified investment strategy to effectively manage volatility and we actively encourage our clients to “ignore the noise”.
If you don’t have a trusted adviser that can help guide you through the headlines and are uncertain about how to protect and grow your wealth in a volatile market, we can help.
FMD Financial has helped many people achieve their goals and plan for the future with confidence. See why were different and book a FREE Financial Health Check today.
General advice disclaimer: This article has been prepared by FMD Financial and is intended to be a general overview of the subject matter. The information in this article is not intended to be comprehensive and should not be relied upon as such. In preparing this article we have not taken into account the individual objectives or circumstances of any person. Legal, financial and other professional advice should be sought prior to applying the information contained on this article to particular circumstances. FMD Financial, its officers and employees will not be liable for any loss or damage sustained by any person acting in reliance on the information contained on this article. FMD Group Pty Ltd ABN 99 103 115 591 trading as FMD Financial is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977. The FMD advisers are Authorised Representatives of FMD Advisory Services Pty Ltd AFSL 232977. Rev Invest Pty Ltd is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977.