Many investors and individuals tend to focus on financial and general news that confirms their existing world view. In order to make informed decisions, it is important to understand both sides of an argument. After all, if you were a juror in a trial, would you make a decision after hearing only one side, i.e., the prosecution or the defense? Would you be allowed too?
When seeking information, if you only read The Wall Street Journal or The New York Times, you will not be aware of the wide differences between their interpretation of the news and their expressed opinions. On the other hand, if you read both on the same day you will wonder if they’re talking about the same planet. Investors, particularly those responsible for investing other peoples’ money, should be cognizant of the tendency to turn the news into an editorial.
Bottom line, as in a jury trial, look at both sides before reaching a conclusion. If not, you risk becoming the poster child for the old adage, “my mind is made up, don’t confuse me with the facts.”
All comments and suggestions are welcome.
Walter J. Kirchberger CFA
