FEAR – it is what newspapers and the media industry understand that the oldest and strongest emotion of mankind.
The Financial Review on Tuesday 13 September explicitly showed how they prey on this emotion to further their own causes. The front page ran with the headline ‘Frustrated investors sell off blue chip stocks’; again from the same edition, the Market Wrap section ran with the headline ‘Shares plunge on Europe fears’; it continued in the Profit Wrap 2011 lift out warning that ‘Growth exceeds expectations, but the picture is turning darker.’
To the casual observer, the newspaper headline is what they will read and remember, but the truth is much more positive.
The capital value of shares will go up and down, but in the long term due to human endeavours, initiative and our need to consume, the market will continue to grow.
in•vest•ment – investing of money or capital in order to secure profitable returns, especially interest or income. An investment is the key to long-term success.
If you listen to these headlines, and buy and sell as a result, you are no longer an investor but playing a speculative game. It is within the article hidden below the headlines that contain the facts that can be easily forgotten. Facts including total dividends paid this past financial year (2010/2011) rose by 9.1% to $18.4 billion. This is an incredible result, and one that outlines why we should be owning these companies, not letting the fear of a headline hold us back from determining our own financial future.
