When Not to Listen

23 January 2008

Frequent visitors to this blog know that I have a tendency to be critical of media outlets that pretend to report the facts on equity market activity.Plug_ears

Yesterday, a large US based news network reported on the Fed’s 0.75 percent interest rate cut.  The anchor women then stated that the Fed’s move “did not work at instilling investor confidence” because the Dow Jones Industrial Average dropped by 128 points.

That, my friends, is an inaccurate and somewhat irresponsible statement.

The fact is that if the Fed had not dramatically cut rates yesterday then the losses on the DOW would have been much deeper and much more severe.

The fact is that the Fed’s move yesterday likely saved individual investors (especially those with retirement savings funds) thousands and thousands of dollars.

Investor relations professionals need to be aware that the media can misinform the public, including retail investors, on a macro economic and a company specific scale.

2 Responses to “When Not to Listen”

  1. Cam Beck

    Good point. It’s amazing to see what people can incorrectly conclude from scant data.

  2. Connecting News, Commentaries and Blogs at NineReports.com -

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