Why You Should (almost) Never Get Your Financial Information from the News!
Updated: Aug 29, 2019
I play this game when I'm reading financial news. If the author is attempting to forecast the future, I save the article with a date. A few months or years down the road, I go back and see how accurate they were in their projections. In most cases, they were not accurate at all.
The media often publishes financial articles with an agenda of selling advertising, using sensational headlines with little regard to the science of investing.
They prey on our tendency to think that you can "beat the market." It's certainly not news for them to write "if you simply invest in a well diversified portfolio, rebalancing periodically and hold your investments for a long period of time, you will have a great investment experience."
Instead they will write almost anything to get you to read the article, and therefore sell advertising.
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