FINDEF016 What do the financial headlines really mean? (516 words)

Headlines are designed to grab the readers’ attention and sell news but often don’t accurately reflect the content of the article. Financial headlines can result in misinformation and investor panic. This article explains why it’s important to seek professional financial advice before hitting the panic button.

I’m the first to admit I’m no expert when it comes to horse racing, so hopefully you’ll forgive my ignorance. During my daily read of the major newspapers, I came across this headline in a major Australian paper:

“Trailblazer equals Phar Lap’s winning streak with triumph at Flemington.”

Wow! I thought. After 80 years, the mighty Phar Lap has been equalled!

Phar Lap’s legend has been passed through every Australian generation. According to Melbourne Museum, his exhibit continues to be its most popular. Intrigued, I read the article.

Only then did I discover that Phar Lap’s record of 14 consecutive wins has been beaten many times – Trailblazer being the most recent in a string of successful horses, including the famous Black Caviar with 25 wins.

That newspaper headline cunningly grabbed my attention, yet having read it, I felt betrayed somehow… even foolish.

It reminded me of an urgent call I’d received recently from a client. Brett is one of those guys you speak to a couple of times each year to review his portfolio – until one day a couple of months back.

Brett had seen this headline on a national news site: