Media Hype/Myths

No News is Good News

By, 11/03/2006

Here's a smattering of today's mass-media, front-page headlines:
"Study: Ocean's edible species fading," USA Today
"Wildfire Murder Charges Filed," cnn.com
"U.S. Identifies Missing Soldier," The Washington Post
"Robots have eerie real look, human twitches" cnn.com
"With Election Driven by Iraq, Voters Want New Approach," The New York Times
"Willie Nelson: Help stop horse slaughter," cnn.com

What do robots, Willie Nelson, edible oceanic species, inane election sentiment polls, and a missing soldier have to with stocks? Absolutely Nothing! Sure they're annoying, but investors should welcome evermore hard-hitting exposes about robots and Willie Nelson crowding the front pages. It means there isn't anything significant enough out there to move markets down. The absence of real news is almost always bullish for stocks.

Today we've got the internet, blackberries, and all sorts of other gadgets to keep us wired around the clock—we're bombarded with more news than ever. Information overload can cause anxiety, and of course, there are genuine things out there to worry about for our culture and society. But we just aren't seeing any hard news about recessions, runaway inflation, sudden geopolitical disruptions, or rampant unemployment. No matter in which nook we look, there aren't many real stories out there that aren't either widely known or generally misinterpreted. The absence of real news makes our hearts grow fonder for stocks.

*The content contained in this article represents only the opinions and viewpoints of the Fisher Investments editorial staff.

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*The content contained in this article represents only the opinions and viewpoints of the Fisher Investments editorial staff.

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