In the whirlwind of today’s news cycle, it often feels like the world is always teetering on the edge of catastrophe. Negative headlines dominate our screens, and the constant deluge of dire news can be overwhelming.
However, it is crucial to acknowledge an undeniable truth: the world is, in reality, progressing rather than regressing.
The media frequently fails to highlight the positive. This phenomenon can be attributed to an old adage in the news industry: “If it bleeds, it leads”. Stories that are violent, sensational, fearful, or negative tend to capture more attention from readers, and news outlets are naturally inclined to prioritize them.
Another reason for this imbalance is the gradual nature of progress. A headline proclaiming a minuscule daily improvement, like “Poverty Levels Decrease by 0.001% Today” would hardly captivate an audience.
Not surprisingly, in a YouGov survey 58% respondents thought that the world is getting worse while only 11% thought that things are getting better (30% were neutral).
Bearer of bad news?
The phenomenon is well illustrated by the case of polar bears.
In the 2000s, when the polar bear population plummeted, media channels were full of distressing narratives detailing the decline of the polar bear population. We were bombarded with countless articles, videos, and images portraying polar bears in a desperate struggle for survival.
However, over the past decade, the polar bear population has rebounded significantly, so much so that it is now the highest ever recorded. An amazing turnaround!
Not surprisingly, this positive development has largely escaped our attention. The uplifting news of thriving polar bears gets no news coverage at all!
A better world…
Over the past seven decades, the global population living in absolute poverty has plummeted from 50% to just 10%. This translates to a remarkable 40% reduction, impacting three billion lives within a single generation!
Yet, this remarkable transformation averages out to a daily decrease of 0.001%, hardly a headline-grabbing figure for any news organization.
By virtually every measure, our world is steadily improving. Incomes are on the rise, absolute poverty is dwindling, our lifespans are extending, and humanity enjoys greater access to food, education, cleaner water, and safer sanitation than ever before.
Any king or queen from a century ago would kill to have the living standard of an average person today.
Headlines, in a way, are what mislead you because bad news is a headline,
and gradual improvement is not.
Bill Gates
So, how does this relate to financial matters?
The world of business news operates on a similar principle to general news. Stories about bankruptcies, layoffs, scandals, business failures, etc. take precedence over reports of positive developments.
Yet, beneath the surface of negative news, progress continues to unfold. Remarkable companies emerge each year, contributing to growth and innovation. And slowly but surely, our economy keeps growing and the market keeps going up.
This doesn’t mean progress follows a linear path. There will be periods when it stalls or even regresses.
Throughout the 21st century, we have seen a series of significant challenges and crises. These included the monumental Dot Com Crash of 2001 and the sweeping Global Financial Meltdown of 2008. Also the 9/11 attacks; wars in Afghanistan, Iraq, and Ukraine. Natural disasters like hurricane Katrina and the Fukushima nuclear incident. The Covid-19 pandemic, the Greek Debt Crisis, Brexit, and many more.
These crises were bad and the negative news driven media made them seem even worse. But as all of this was happening, the S&P index has gone up from 1,500 in 2000 to an impressive 4,300 today – a near threefold increase!
So, let’s stay committed to investing for the long haul by remembering that amidst the din of daily news, the world continues its silent journey towards a brighter tomorrow!
Great insights. Thank you.