The jubilation across much of the mainstream media as the FTSE-100 comes within sight of recapturing the all-time from 15 years ago provides a timely reminder that the current crop of financial journalists are largely clueless.
Frankly it is hard to know where to begin in trying to provide some semblance of informed response.
A large number of articles referred to “investors in the stock market”.
I’m sorry, but you cannot “invest” in the stock market. You can invest through the stock market, but not in it.
Well, that’s not strictly true as you can buy shares in London Stock Exchange Group plc, but the term “investing in the stock market” as commonly used is a misnomer.
While the main stock market index may have reached a former nominal high, one must re-calibrate the index to take account of price inflation. When this is done the real level is currently just above 4,000 – a fall of around -40%.
Other articles proclaimed the high level of the market was good news for “investors and workers saving for a pension”. This statement is absolute nonsense.
A rising stock market is terribly bad news for anyone investing in shares as your money will buy fewer of them. How in heavens name can this be good?
The fact journalists fail to grasp such elementary points is testament to the level of ignorance that now pervades the profession.
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