Claire Corlett

Fish Food, Fish Tanks, and More
Ignore Media Hype When Investing | Fisher Investments [2018]

Ignore Media Hype When Investing | Fisher Investments [2018]


I don’t think most people
really understand how to interpret media correctly. Newspapers, television, news… are trying to convey stories
that they think you’re interested in, that they believe are true, that they think will catch your attention and that you’ll maybe want to pass on
to your friends and family and coworkers. Now, the fact of the matter is
what does that mean in a different sense? It means that they’re trying to
tell you a story that they think you either are
or are about to be interested in. They are trying to be
a reflection of the news relative to their sense of who you are. And in that, the fact of the matter is that they’re very fixated, very focused, on that which is of current interest. Markets pre-price all widely known
information. That’s what they do for a living. It’s what they’re really good at.
It’s their core. The more we can know that
you and I can talk about this topic and we can talk about it with our friends.
Our neighbors know about it. You can know that it has no subsequent
pricing power in markets. You can know that it’s already been
pre-priced. That is what markets do for a living. Once you get that in your bones,
once it’s really clear to you, once everybody’s talking about it, you don’t worry about it,
you focus on something else. You use what could be called “media hype”
or the things media is very focused on to note they actually don’t move markets. Your friends are going to say,
“Gee, but this and that, boy, that could really knock the market.” And you intuitively say, “No, I read
the headlines. I see all those headlines. I know because all those headlines say
this is a big fear, but you shouldn’t be afraid of it
because it’s been pre-priced. The prime lesson is markets pre-price
all widely known information. News is the conveyance
of all widely known information, therefore, must have been pre-priced, therefore, you want to be focused on
other things that may surprise people, not the so-called hype
that’s in the headlines, because that is what the markets
have already taken care of.

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