Invest
How ‘fake news’ can impact your portfolio
In an age where some online media can be deliberately deceptive, investors need to apply more critical thinking than ever before.
How ‘fake news’ can impact your portfolio
In an age where some online media can be deliberately deceptive, investors need to apply more critical thinking than ever before.
‘Fake news’ is a term that gets thrown around a lot these days, especially by the US president Donald Trump.
But the real definition is not articles that have genuine mistakes or an opinion with which the reader disagrees, but a disturbing new trend where digital media companies are actively disseminating information they know to be false, for financial or political reasons.
News articles have long been a source of quality information for investors, who have sought to make informed investment decisions off the back of economic or political developments that affect markets, companies or sectors.
But with the advent of fake news, investors need to be especially careful, no longer able to rely on something just because it says the word ‘news’ on the masthead and looks legitimate.
This is the view of fund manager Raj Shant, a portfolio manager at Newton Investment Management, which is part of the BNY Mellon group.
In an analysis article published by Investor Daily, Mr Shant argued that fake news – along with that other favourite term of Mr Trump, ‘alternative facts’ – pose a threat to retail investors.
“Today, there is a proliferation of information, a good portion of which is unreliable,” Mr Shant said.
“We believe this increases the premium on trustworthy and quality providers of information, and on those who can interpret it.
“Fake news and alternative facts may be a very modern development in the battle for eyes and ears, but when it comes to investing, we believe the tried and tested methods of analysis still stand the test of time.”
The onus is now on investors to ensure they are verifying information and cross-checking facts, Mr Shant said, adding that social media can create “echo chambers” where investors are not getting access to balanced information.
Governments in Europe have proposed potentially cracking down on fake news operators. It remains to be seen whether similar legislative moves could occur Down Under, but in the meantime it’s best that investors apply critical thinking to all information and keep in mind that not all online media content is created with good intentions.
RELATED ARTICLES
Property
Australia’s rental squeeze is now a business problem: inflation, capacity and the new growth calculus
Record-low rental vacancies are no longer just a social headline – they’re reshaping cost structures, wage dynamics and capital allocation across corporate Australia. With economists warning of a ...Read more
Property
Rents Are Repricing Australia Inc: What record‑low vacancies mean for inflation, talent and strategy
Australia’s rental market has slipped into a vacancy desert, and it’s not just tenants feeling the heat. Persistently tight supply is pushing up rents, embedding services inflation and complicating ...Read more
Property
Young buyers poised for a comeback as 5% First Home Guarantee takes effect
In a move set to reshape the Australian property landscape, the government’s revamped First Home Guarantee is poised to open the doors of homeownership to a new generation of young AustraliansRead more
Property
AFG Securities waives settlement fees for first-home buyers, signalling strategic shift
In a strategic move aimed at easing the financial burden on first-home buyers, AFG Securities has announced the elimination of settlement fees on select loans, potentially saving customers up to $699Read more
Property
From trust woes to wealth: Australian agencies' secret to boosting prices
In Australia’s residential market, trust is no longer a nice-to-have—it’s a pricing variable. Persistent distrust of real estate agents is depressing vendor outcomes and inviting regulatory heat, but ...Read more
Property
Reality check for first home buyers: Affordable suburbs with 5% deposit
In a significant development for Australian first home buyers, a new property search tool from Aussie Home Loans is set to transform the way prospective homeowners approach the market. As the Federal ...Read more
Property
Trust as a performance multiplier in Australia's real estate market
In Australia’s A$10–11 trillion housing market, trust is emerging as a crucial factor that sellers and agencies can no longer afford to overlook. Traditionally viewed as a soft metric, trust is now ...Read more
Property
LJ Hooker Lake Macquarie makes a splash with Belmont buy as real estate consolidation looms
LJ Hooker Lake Macquarie’s acquisition of the Belmont office, including its rent roll, is less about shopfronts and more about balance‑sheet resilience. In a market where listings ebb and flow with ...Read more
Property
Australia’s rental squeeze is now a business problem: inflation, capacity and the new growth calculus
Record-low rental vacancies are no longer just a social headline – they’re reshaping cost structures, wage dynamics and capital allocation across corporate Australia. With economists warning of a ...Read more
Property
Rents Are Repricing Australia Inc: What record‑low vacancies mean for inflation, talent and strategy
Australia’s rental market has slipped into a vacancy desert, and it’s not just tenants feeling the heat. Persistently tight supply is pushing up rents, embedding services inflation and complicating ...Read more
Property
Young buyers poised for a comeback as 5% First Home Guarantee takes effect
In a move set to reshape the Australian property landscape, the government’s revamped First Home Guarantee is poised to open the doors of homeownership to a new generation of young AustraliansRead more
Property
AFG Securities waives settlement fees for first-home buyers, signalling strategic shift
In a strategic move aimed at easing the financial burden on first-home buyers, AFG Securities has announced the elimination of settlement fees on select loans, potentially saving customers up to $699Read more
Property
From trust woes to wealth: Australian agencies' secret to boosting prices
In Australia’s residential market, trust is no longer a nice-to-have—it’s a pricing variable. Persistent distrust of real estate agents is depressing vendor outcomes and inviting regulatory heat, but ...Read more
Property
Reality check for first home buyers: Affordable suburbs with 5% deposit
In a significant development for Australian first home buyers, a new property search tool from Aussie Home Loans is set to transform the way prospective homeowners approach the market. As the Federal ...Read more
Property
Trust as a performance multiplier in Australia's real estate market
In Australia’s A$10–11 trillion housing market, trust is emerging as a crucial factor that sellers and agencies can no longer afford to overlook. Traditionally viewed as a soft metric, trust is now ...Read more
Property
LJ Hooker Lake Macquarie makes a splash with Belmont buy as real estate consolidation looms
LJ Hooker Lake Macquarie’s acquisition of the Belmont office, including its rent roll, is less about shopfronts and more about balance‑sheet resilience. In a market where listings ebb and flow with ...Read more
