Distinguishing information from entertainment in biz journalism

Daniel Solin writes for US News & World Report about good financial journalism and bad financial journalism on television.

Solin writes, “Carl Richards, a colleague, writes a regular blog for The New York Times. His most recent columns discussed the importance of understanding math in order to make intelligent decisions and how trying to find the ‘best’ investment can actually stop you from meeting your real financial goals.

“Larry Swedroe recently referenced an ‘S&P Indices Versus Active Funds’ scorecard, looking at 1-year, 3-year and 5-year performance ending ending in Dec. 30, 2013. It showed that the majority of these actively managed funds invested in European equities underperformed their benchmarks.

“My colleagues Tim Maurer and Jared Kizer regularly write posts that educate and inform investors. I have been writing books and blogs since 2006. My recent posts include advice on the most common mistakes made by investors, why you shouldn’t rely on predictions about ‘the coming correction’ and many other subjects.

“If anything, the interest in articles setting forth sound investment education ha increased since 2008, as investors began asking the question, ‘If those in the financial media who claim to be able to predict the future couldn’t predict the greatest financial downturn since the Great Depression and then the subsequent recovery, why should I rely on them?’

“It’s not enough to expose the financial media for the charade much of it has become. It’s time responsible financial journalists clearly distinguished information from entertainment.”

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