With NZ’s general election coming up and the world in the grips of an international pandemic, knowing how to spot fake news, misinformation, and conspiracy theories is more important than ever.
The term “fake news” has varying definitions, though can be approximately defined as poorly researched, heavily biased, or intentionally incorrect journalism. It is often of a sensational nature and is created to be widely shared or distributed for the purpose of generating revenue (as major websites get paid for hosting online adverts), or promoting or discrediting a public figure, political movement, or corporation. Fake news undermines professional media coverage and makes it more difficult for:
Don’t get us wrong:
But… frequent visitors to this website may have already identified the frustration that most investment professionals (including us) can experience, given the impact that many media reports can have on some people’s financial decision making – such as changing investment strategies based on fearful news reporting, fake or otherwise.
Especially over the last decade or two, technology has disrupted many long-established businesses. Media is no exception.
Just a few short years ago, traditional news outlets including newspapers, magazines, and the evening news was big business, mainly because the funding required to pay for printing presses or television studios and expensive cameras and journalists was so difficult for a newcomer to get. The same funding barriers prevented anyone from obtaining, then passing on, simple information to the masses, such as the weather forecast.
Nowadays, establishing your own blog or website can be done for a hundred bucks or less, and anybody with a smartphone and a social media account can have the same reach as a journalist. News is 24/7 and delivered via smartphone app or social media – if we need to know the weather forecast, rather than tune into a radio station or wait patiently for the six o’clock news (as we had to just a decade ago), a smartphone app will tell us instantly. In the face of such technology and innovation, mainstream media remain burdened with their expensive TV studios and whopping newsreader salaries.
Several other matters have also had an impact:
For better or worse, the points above have all accelerated the development of non-mainstream media and sources of information, which may be more inclined towards fake news than mainstream outlets, and in many cases could be more biased.
Biologically, we’re hard-wired to pay close attention to negative things, so we can avoid them. This is a throwback to evolution, as our cave-based ancestors needed to carefully remember things that might cause them fatal harm: such as poisonous berries, or the regions where predators such as sabre-toothed tigers roamed. Our modern brains still have this programming, which means we pay a lot more attention to negative information than positive information.
The media have known this for a long time.
We never see a journalist saying to the camera, “I’m reporting live from a country where a war has not broken out” or “…reporting live from a city that has not been ravished by a hurricane”. As long as bad things have not vanished from the face of the earth, there will always be plenty of incidents and accidents to fill the news, especially when billions of smartphones have turned most of the world’s population into crime reporters and war correspondents.
Crisis is a word much-loved by amateur and professional journalists alike, though it has become so overused it’s starting to lose meaning. The term crisis is now used to describe nearly every newsworthy situation, which might include the climate, Covid-19, poverty, inequality, the housing crisis, and so on. Paying close attention to such anxiety-inducing headlines bemoaning the latest crisis might not only have a negative impact on your overall wellbeing, but could also give you a distorted or pessimistic view of the world, here’s why…
The negative nature of news (not just fake news) is that we might all think the world or country is steadily getting worse. In fact, the opposite is true. Consider these facts, which may run contrary to some popularly held beliefs:
Try telling anyone who’s reading too many real and fake news headlines that humankind is getting healthier, wealthier, less conflicted, and more equal!
Recent events clearly demonstrate the value of high-quality journalism. Unfortunately, it often seems the response of much of the media to these events – mainstream and otherwise – has shown how lacklustre or misleading journalism can play a part in making a bad situation even worse.
Here’s some tips to deal with fake news, and to help deal with some real news too!
Follow the tips above and not only will your finances thank you; you’ll probably be a lot happier too.