Why negative financial news sells
Bill Rempel, a.k.a. NO DooDahs! » Keeping Perspective
I am pretty much of a permanent positive guy when it comes to investing and I try to find companies with positive stories that will make me outsized returns over the longer term. The news however, and many financial blogs are full of recession, crisis of the day/week/month and other negative stories. Bill Rempel, in the post linked here gives the best argument I have seen on why negative financial news is so popular. My favorite line:
Filed Under Investing BlogsThe point is, at any given period in time, there is within us the ability to focus on the negative or the positive, and focusing on the negative at any one point in time results in a point of view that, in hindsight, pretty much always looks ridiculous. Unfortunately, our focus can color our reactions, and become self-fulfilling – as anyone who’s ever sold at the bottom can attest.
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