20/20 Money: See the Markets Clearly and Invest Better Than the Pros

Chapter 4. SENTIMENT AND THE MEDIA

	The man who reads nothing at all is better educated than the man who reads nothing but newspapers.
	--Thomas Jefferson

	We can't quite decide if the world is growing worse, or if the reporters are just working harder.
	--The Houghton Line, November 1965

Some believe the media controls sentiment. Others believe sentiment controls what the media prints. It's probably a little of both, and maybe neither.

What's most fascinating about the media and sentiment over time is its amazing consistency. For as long as news has existed, folks have had the same complaints about it and suffered from the same biases in consuming it—no matter the type of media (newspapers, TV, Internet). And for as long as there have been markets, there have been manias and panics. That speaks to something about us as humans generally, not just the mechanisms of the media.

Either way, the media has always played a large role in sentiment and investing. It cannot be ignored if you aim to understand how markets work. This chapter will delve into a few intricacies of the media and perhaps provide some insights you haven't before considered.

For years now I've been Managing Editor of Fisher Investments' financial news and commentary website, MarketMinder.com. At MarketMinder, we do two things. First, we have a group of analysts who sift through over 100 of the top print and online publications published throughout the world each day to find the most relevant stories and perspectives. Similarly, ...