The Media Is Telling Us That the Market Had a Rough Month, but Did It?

The DOW dropped 500 points in April. This also happened in 1987. The difference is that in 1987, this was a 22.6% drop and last month it was only a 1.4% decline. Today, Ira and Jonathan Walker talk about an article from Jason Zweig called The Volatility Illusion. This article highlights a trick that the financial news media uses to create the illusion of unstable markets—reporting on the magnitude of market changes, while never mentioning the percentage of change. Listen along as these two advisors talk about how the kind of information investors get on television and through news outlets doesn’t teach investors about how investing actually works.

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