The sludge is deep out there

Every now and then, I enjoy having a “double-take” at financial news articles and seeing what’s behind the story, while I “try to hear what’s not being said”, or perhaps, not being written.

Many financial news articles are designed to mislead and frighten and some of them are just worryingly funny.

Some of the stuff I have seen in only the past couple days include:

“Australian Dollar falls for the sixth straight week, its longest since 1985”. Holy cow!, makes it sounds like the Aussie has fallen below 55 cents. Another journalist writes, “and it looks set to extend its decline into the seventh week”. How does she know this?

“CEO celebrates their stock price rising 40% on day of IPO”. So either your bankers did a bad job valuing your business, you did a bad job representing your pre-IPO shareholders or you have incentives tied to the performance of the stock’s public price.

Qantas CEO cries foul over uneven playing field compared to Virgin’s ability to raise capital. Seriously! I wonder what Ansett or anyone else who has tried to compete against QF think.

As CEO of Woolworths nears his retirement, the ownership of their “poker-machine business does weigh on his conscience.” OK, Grant. You’ll get by, I’m sure.

If clients only knew of the lack of investing experience and competence possessed by “Chief Investment Officer’s” that are hired at certain brokerage and investment houses

Fund Managers tell the public that they should be investing overseas (outside of Australia) because it’s apparently not practical and too difficult to be a direct share investor in international equities. No, it’s not. I’ve been doing it directly for myself and clients for over 20 years. Amazingly, these comments from a fund manager happens to coincide whenever they launch their first international (product) fund.

For those who only wish to hear what they want to hear, this post is not a gripe nor soured with grapes. It’s meant to alert people to the bullshit they are fed in the financial press.

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