Is the Financial Media a Trustworthy Source for Investing Information?
At NEST we take pride in providing data-driven investment management for our clients. But where does that information come from? What data sources are trustworthy and unbiased? Do we just follow what the financial media says?
As we mentioned in another blog post, asking a potential financial advisor where they get their intel is one of the most important things to ask before hiring them.
We’ve made no secret that at NEST we view financial media outlets as unreliable and biased sources of information, unfit to base your investment strategy on. We don’t use them, and we strongly encourage our clients to avoid them as well.
But when we say, “financial media,” who do we mean? And can they really be that bad?
Read on and then decide for yourself.
Financial Media – What Is It?
The financial media is any media company or subset of a company that focuses on financial news, including investing, the economy, and personal finance.
Examples include CNBC, Bloomberg, Fox Business, Motley Fool, Reuters, Yahoo Finance, Barron’s, Market Watch, and The Street, to name a few of the most popular.
What’s the Problem with Financial Media?
First and foremost, they are media companies.
And ahead of making you money with your investments, their priorities are to attract and keep your attention, sell advertising space, and be profitable in one way or another to the companies that own them.
Let’s emphasize what they are and aren’t:
They are: media companies that focus on financial news.
They aren’t: unbiased, financial research firms offering free, objective advising services.
Their business model is selling your attention to advertisers. That’s how they keep the lights on. This is critical to consider. Why? Because they’re going to cover topics that sensationalize the market, spin drama, and please advertisers — not necessarily what will serve you best.
Who the Financial Media Really Works For
They are beholden to the companies that own them and the advertisers that pay the bills. Not to you or your portfolio.
This situation is ripe for bias and conflict of interest.
Imagine this: a hedge fund rep goes on air, says something misleading, viewers buy based on it, the stock price goes up, the hedge fund sells, and viewers are left holding the bag. This is textbook pump and dump, and though illegal, it’s hard to detect and easy to execute when the media is complicit.
What the audience gets is a cherry-picked narrative — one that benefits someone else. Financial media is often less about facts and more about influence.
Why Do Some Firms Still Use It?
If financial media is so problematic, why do many financial firms and advisors still rely on it?
Lack of awareness – They may not know about alternatives. Many advisors aren’t trained to distinguish between biased media and real data.
No active management – If they’re just selling cookie-cutter portfolios, they don’t need deep data.
Skill gaps – Some advisors wouldn’t know how to interpret the data even if they had access to it.
Laziness – It takes time and effort to parse data, and many don’t want to put in the work.
What We Do at NEST
We do not rely on financial media. We do not read it, watch it, or cite it. And we advise our clients to avoid it too.
Instead, we purchase unbiased economic research and data from sources whose business is just that — data, not media.
For example, we use research from Hedgeye, a reputable firm that offers macroeconomic research without selling ads or pushing a narrative. They are not investment managers — they do not profit from our performance or try to influence markets. Their product is the data itself.
As Sean often says: If it’s free, it’s shit. If you’re not paying for it, you’re the product.
We spend hours each day digesting this raw data, analyzing macroeconomic trends, and using that information to shape and adjust our portfolios in real time.
Why It Matters
Using financial media as your investing compass is like getting a weather report from a reality TV show. It’s not just inaccurate — it’s built to entertain, not inform.
Using reliable research means our clients' investments are aligned with real-world economic conditions, not headlines.
If you're ready to break free from the financial media herd and work with professionals who go straight to the data and know how to use it, schedule a no-obligation call.
We are an Austin-based financial firm, and we are passionate about helping you achieve your financial goals through sound planning and active, research-driven investing. Let us help you optimize your assets, maximize your returns, and build your dreams.
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Email: info@nestfinancial.net