Broker Check

Financial Journalism

| July 31, 2020
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The first thing any new investor will do is check out the news. Why not stay informed on the market when it could possibly affect your investments? It makes sense until you have been watching financial news for some time. At first, it seems that places like Yahoo Finance and CNBS and the talking heads at MSNBC, whatever the letters are, have the best interests for the viewer. You will learn quickly if you do a quick Linkedin check on these people writing the articles and the ones talking in the studio. Most, if not all, have only been in the journalism field their entire career. That makes sense because they are reporting but with how many shows and ways to attract clicks to articles a lot of "analysis" is being backed into the final result. With no background or licensing these financial journalists are swaying opinions. All they want is more eyeballs on their articles and shows. If TSLA is the hot stock of the week because Elon Musk said some dumb things on twitter they will beat it till its dead and major news stories that have massive effects on the market will not be mentioned at all. With the rise of Robinhood and free trading, these platforms are probably seeing an uptick in revenue as all these retail traders come with a fresh $,1,200 in their account and nothing to lose. They need information and the first place any retail trader will go are the sights mentioned above. I know this because I was a retail trader about 5 years ago and only checked these sights. Maybe it's part of the growing process but if you have serious positions in the market you need to be researching the companies you are investing on your own or at least pay an advisor to do it for you.

I subscribe to the Yahoo finance morning newsletter and I have never seen anything littered with awful advice and opinions. I will verbally gasp at some of the things that they say. This is a problem with news in general and can be piled in the other fake news outlets. Podcasts on these types of stories and events are what I believe will take over these archaic mediums. There is too much nuance and ideas that need to be fleshed out that cannot be capture in a quick article. I will say I do check Yahoo finance and CNBC every morning for a quick rundown on headlines but absolutely will not look further than that. Basic facts are hard to come by but Twitter is a great way to pick out the finance heads that you trust. It might take a while to weed out the nonsense but once you have your feed to you liking you can stay up to date and focus on what matters.   

Stephen Poll
Financial Advisor at Clay Financial
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