On July 20, you may have noticed, the equity market began its move up and out of a range it had been tracking since the mid-June panic lows. If you were not aware – good for you as my messages are taking hold.
However, financial journalism absolutely did notice— and as always was waiting patiently to unleash its “crisis of the day” response kit. Why – you may ask - would they do this? Because even the briefest positive trend signifies a tremendous threat to the clickbait catastrophism that continuously rings their cash register during a bear market. The old saying of – “if it bleads, it leads”- still holds true.
The ultimate threat to the financial media business is that you will begin to breathe easier and feel just a wee-bit better about what may be going on in the markets, the world, and life overall.
But wait - media cannot and will not allow this because they know that if your financial blood pressure declines, you will naturally stop clicking on every apocalyptic headline they can conjure up. And if it continues, it will depress their advertising revenue.
As a response, throughout the day on July 20, we were treated to the following bombardments:
You can count on the fact that just when the sun is shining again, the economy is regaining its normal business cycle, and the market is ascending its longer-term trend, that's when financial media will unleash its last, desperate emotion-pulling weapon: the double dip!
Now, you may think I'm kidding about this, or that it's just my overly sarcastic and long held perception of the financial media boiling over. You're going to read this…It's just a matter of time. Regarding the economy: the double dip recession. And in the market: the W-shaped recovery (a/k/a “the inevitable test of the old lows”).
If I were to guess what media will cite as the (one and only) double dip recession in history: the blip in 1980 followed by the Volcker-engineered one in 1981-82. Most likely, this untreated sewage is being warmed up even as we speak.
And regarding equities (fractional ownership of businesses), media will utilize every trick in its bag to deny the one undeniable mega-truth: the best predictor of the trajectory of a market recovery is the trajectory of the previous decline.
Once again: financial media exist for one reason only—to sell advertising. Their revenues are tied to clicks. And clicks are a function of trapping readers in a never-ending cycle of fear and regret. In one sentence: financial media exist to help investors fail.
That's what the media were doing on July 20. That's what they're doing right this minute. And that's what they'll always do.
And the only antidote is: Focusing continuously on your long-term plan.
Source: Nick Murray NMI Interactive August 2022