WE live in a world that can only be described as driven by “instant hysteria.” You see it all the time on social media, where people frantically post a news item or commentary from one, two, or even five years ago as something current. Information from “Fake News” web sites are presented as factual.
While the use of “sound bites” to show a person’s position or opinion on a topic are old style, now not only are words twisted, but quotes are edited to distort as much as possible. Money is not the root of all evil. The correct biblical quotation is, “The love of money is a root of all sorts of evil.” But truth is not important if you are trying to push a particular agenda.
As Niccolò Machiavelli—author of the political treatise The Prince—did not say, “The end justifies the means.”
Look at all the instant hysteria over the United Kingdom voting to leave the European Union (EU). You would think from the reaction of the financial markets and the commentators that World War III had been declared. First, the referendum is only a “suggestion” to the British parliament to leave the EU. It still must vote on the proposal. Second, there is a specific provision in the 2007 Treaty of Lisbon that created the constitutional framework of the EU for nations to leave.
Article 50 provides that “any member-state may decide to withdraw from the union in accordance with its own constitutional requirements.” Further, “a member-state, which decides to withdraw, shall notify the European Council of its intention. The union shall negotiate and conclude an agreement with that state, setting out the arrangements for its withdrawal, taking account of the framework for its future relationship with the union.”
In other words, the UK and the EU will work out what the future relationship will be, including trade agreements, before the actual split takes place.But, according to the instant hysteria created in large measure by the losing side and the bankers and members of those EU countries desperate not to have the UK leave, the zombies will begin attacking at nightfall any day this week.
This type of nonsense can be dangerous. Decisions made too quickly and without correct information can be costly. Certainly, liquidating stocks positions in the global markets on the massive selloff last Friday may have made sense. But what does Brexit really have to do with the Philippines in the short term?
Having said that, it is also important in investing—whether with stocks or a business—to be comfortable and to be in, at least, some control. However, we must be on guard from being manipulated by the press and media that help create this instant hysteria whether in politics or economics.
Image credits: Jimbo Albano