TW: Have mentioned many media is extremely biased. Biased mostly in favor making money but also inclined towards the optimistic scenarios, why? See bias #1 (optimism, happy talk etc. all sell better than the alternatives). Another media animal is the iconoclastic, contrarian sort. Since we are in the dumps the contrary play becomes the optimistic play, marry those two together and you get TV pundit nirvana. Perhaps they are right, alternatively the actual data is right...
From Economist:
"A FEW weeks ago I wondered why CNBC correspondents would be foolish enough to call the bottom of this market. It seems they are still running with this. Absolutely every piece of bad news today—for example the Case-Schiller index decline in January—is somehow a green shoot (everyone’s new favourite expression). If the second derivative is not turning positive the sixth one is. I spoke to an equity trader this weekend who claimed that finally there’s lots of activity and investors are going long. He expects it to last this time. But I wonder if any fundamentals actually mean anything at this stage.
The Wall Street correspondent and I joked yesterday that everyone now suffers from bottom fatigue. Journalists, investors, and pretty much everyone else are just plain tired of looking at ominous statistics and expecting the worst. It seems like we’ve called bottom because we can’t take it anymore. If animal spirits can inflate prices, can they also establish a floor?"
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