Big news missing the big picture: Stock market performance in the news

Business

The performance of stock markets often appears worse in the daily news than it actually is. This column argues that this negative news bias arises from two factors: (1) journalists tend to focus on major events, and (2) the daily performance of stock market indices is negatively skewed. It shows that about half of the negativity bias in news can be explained by the distribution of stock returns, even when the negative reporting bias is not explicitly present. Media consumers should be aware of

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