The Story of Rich: A Financial Fable of Wealth and Reason During Uncertain Times

Information Overload

All of this has become hyper-important these days. Financial news is ubiquitous on television and in print. It’s everywhere and all the time. It presents every different point of view imaginable, and after perusing it, we are left with nothing but jumbled emotions, possibly some fear, and no clear plan for the future.

One thing to remember about journalists is that they get rewarded (paid) for viewership or readership. The more people that tune in to or click on their stories, the more valuable they are to potential advertisers. As a result, they will always gravitate toward the extreme stories and reportage, not the benign.

The house that burned down last night or the person who had an auto accident on the way to work this morning are the lead stories, and if there are flames or wreckage to show, it’s even better. What we don’t hear about are the 99.9 percent of houses that didn’t burn down or the fact that everyone else made it to work safely. If that was the news, we would be bored and turn it off. It’s not the journalists’ fault; it’s human nature.

The same is true for business and financial news. The headlines are Bernie Madoff, Enron, and bankruptcies. But just as importantly, the financial news swings with the emotions of its viewers. Back in 1999 and 2000, there was little warning of eminent collapse. Day traders made up the viewership of financial news, and they didn’t want to hear negativity. These days, the opposite is true. Negativity is so prevalent ...