One of the most complex / dense writers that I read regularly and usually read more than 1x, the Heisenberg Report, posted on SA today an article that reflects a point I was making earlier this week about the simplistic press narratives and marketing spin used to keep individual investors putting our capital in play.
This is a dense post and has at least two key themes, but the one that I am focused on is how simplistic narratives drive both human and headline algos to make investment decisions that may / may not be completely factual, or grounded on solid financial data. As marketing departments do what they are designed to do – drive more business, they will continue to get better and better and influencing consumers (amateur investors) to generate revenue for the professionals. The marketers / spinners are not evil or malicious; they are doing exactly what they were designed to do: drive revenue growth.
The key take away for me, which is the same point I made earlier here, is that we individual investors need to really spend the time and diligence behind our strategies and investment decisions – check, cross-check and corroborate all inferences and recommendations with our own data analysis. Our jobs are getting harder.