My wife is currently in an inpatient headache clinic at Thomas Jefferson Hospital in Philadelphia. As a research hospital, they are employing some innovative treatment protocols. We have been very impressed with her care so far; she described it as "stellar."
My oldest son, Chris, has been waking up at 6:00 a.m. on Saturdays to drive to his cross country meets. At the end-of-season banquet, I discovered that he wasn't actually running in many of the competitions; he was there to cheer for Gavin, the only high school runner at our very small school. I am incredibly proud of him.
It's just a group of bachelors at the house since my daughter is in college, leaving me with my three sons, aged 12, 14, and 16. Things were going smoothly until one night when I decided to make hamburgers on the grill. We couldn’t find any ketchup, and when we finally did, there was only a small amount left. Each of us could only get one squirt at a time as we passed the bottle around.
How do you know if a market economist is making stuff up?
His lips are moving.
Navigating financial articles can be challenging. Today, I will help translate financially related headlines so you can be better armed against Fake Financial News.
First, I’ll show you a headline, and then I will give you candid remarks from the author (at least what I imagine they might be).
Headline: Stocks rise on optimism that a close election race is upon us (Fox News Business)
Candid Remarks from Article Author: I have absolutely no idea why the stock market is up 1% today. Why would a "close race" even matter? I guess I'm kind of making stuff up. But my editor needs something by noon. Markets are driven by human fear and greed, which are notoriously difficult to predict.
Headline: The One Stock I’d Buy Right Now (Motley Fool)
Candid Remarks from the Author: I hope this headline catches people's attention, so they click on it. Now, I get to have people speculate on how one small pharmaceutical stock is ready to skyrocket. Of course, if my stock picking was consistently correct, why would I write articles for a financial news site making $50,000 a year?
Headline: 10 Reasons for Investing in Gold Bullion (GoldSilver.com)
Candid Remarks from the Author: I assume everyone already realizes we are just trying to sell you gold. It’s strange how we want to sell OUR gold when we believe it’s so valuable, isn’t it?
Headline: Latest Warning Sign for Markets: A Possible ‘Earnings Recession’ (New York Times)
Candid Remarks from the Author: I will show them a bunch of impossible economic data they won't understand..... analysts expect earnings to rise by just 1.2%…. Wall St. analysts are slashing forecasts…. The financial community expects an earnings recession….
Granted, I don’t know what the stock market will do. I'd live on a private island if I could accurately predict stock market changes. People worldwide would fly there, bow at my feet, and beg me to handle their portfolios.
Headline: Emerging markets are red hot right now. Three investments for the rest of 2023 (CNBC)
Candid Remarks from the Author: Is investing in something "red hot" smart? Probably not. Can investing in Brazilian stocks and Mexican bonds be profitable? Sure. Is it appropriate for most investors? Well…..
We all know that long-term diversified and disciplined investing is extremely effective. The truth is- we don’t have enough news articles on the website this week. I thought the headline sounded compelling, and we’re competing for "clicks."
Headline: Trump's Post-Election Stock Boom Won't Stop Inevitable Doom, Economist Harry Dent Warns
Hi, my name is Harry Dent, nice to meet you. For the past twenty years, I have been predicting financial armageddon. I've written countless books and articles scaring the pants off our gullible people like you. I've made lots of people make terrible investment mistakes.
Why do they even publish my opinions anymore? I've been wrong every year for the past twenty years, except one. In 2008, I hit the nail on the head. And you better believe I've been playing up that fact for years.
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I apologize for my snarkiness. This kind of reporting is poor for your financial health. Countless times, hard-working Americans see their investments falter because they pay too much attention to Fake Financial News.
Remember that 20 years ago, the financial news machine didn’t even exist. Investors did just fine without it. For most of history, you needed to pour through the tiny print in the newspaper's financial section. Fake Financial News does nothing but muddy the waters, create confusion and fear, and hurt long-term returns.
Remember that according to a long-term study by Dalbar Inc., investor returns are far below actual market returns. In fact, over the past 30 years, the stock market has returned an average of 10%. The return for an average investor? 4%.
Ignore the headlines. Stick to your plan. Watch videos about kittens. I believe it will give you just as much relevant information. Plus, all that cuteness will lift your spirits.
Be Blessed,
Dave