Media Response

• Study of the effects of news on investment decisions:

• Two groups: one received news and one did not
• The group with no news outperformed
the group that received news
 Media Response
• People often feel the need to react to new information
• News is often irrelevant to long-term performance and is often
misinterpreted
• Information overload can cause stress
Media Response
• Advice:
• Stick with a long-term investment strategy
• Turn your televisions off when it comes to investment news
• Don’t feel you need to react to every bit
of information you hear