Why daily market coverage isn’t important to most consumers

Jack Murtha of the Columbia Journalism Review writes Tuesday about stock market coverage and its meaning to the average consumer.

Murtha writes, “The consensus among journalists seems to lean toward encouraging investors to relax and wait this one out. But how can lay readers be expected to judge one seasoned financial reporter’s opinion over the other?

“Turns out, in this case, they don’t necessarily have to. Most Americans don’t deal with stocks intimately enough to warrant a constant eye on financial news, just as most people don’t need to check their 401(k) every day. Plus, heavy stock market swings — and the daily ups and downs — are connected to the US and global economies but don’t represent their health, experts say.

“‘I’m not sure why the local Fox affiliate needs to lead their news tonight with a stock market turmoil story,’ FiveThirtyEight’s chief economics reporter, Ben Casselman, said Monday. At least not yet. That’s good news, since general assignment reporters tasked with covering such an intricate issue are liable to breed more confusion.

“Financial journalists had every reason to vigorously cover the wailing markets of yesterday. That’s true today, too. But until market reports nail down the bigger story hovering above this instability, most people don’t need to stay glued to the coverage.”

Read more here.