Language choices matter

By | May 23, 2017

The language news sources choice matters … significantly in my opinion.  Here are the framing assumptions:

  • Many people (investors too) read headlines and snippets and few take the time (or have the time) to read the full text and try to comprehend the nuance
  • All stories, investment stories too, have nuance
  • The language used in headlines creates and demonstrates the bias of the writer and perhaps “the street” for investments

Here is a good example from Briefing.com … “…worse than expected earnings and a 3.0% decrease in comparable store sales” … this just feeds the negative bias for retailers.  When actually, the earnings were $0.01 from consensus, and revenue (which i find most important) was about 1.0% ($6.2m) above estimates.  But that was not mentioned.  So income missed, revenue exceeded, but the headlines completely avoided the positive (revenue).

For the headline readers, continue selling the retailer.  For those of us who actually read the details and try to understand the nuance, we will do our best to take advantage of your headline only ignorance / actions.

Thank you!

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