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Misleading headline of the day
Tuesday, December 02, 2008
It's natural to wonder about the real utility provided by editors and others in the publishing business who, for some reason, feel obligated to alter the headline supplied by the author of an article for one reason or another.
Apparently, they receive some kind of special training to write headlines that make for a more consistent overall look and feel in a publication, but, sometimes they just entirely miss the point. Such was the case in this story about gold at Commodity Online.
The headline apparently derived from this paragraph:According to a research report from Kedia Commodities, gold is headed for an annual drop after seven straight yearly gains. Precious metal is being so far steady today in the markets as worries persist and expand due to the deepening of the global recession that is eroding to a further extent the appeal of commodities including the gold of course.
Yes, the English language looks to be a challenge as well for this publication that I believe originates in India.
As for the price of gold, any decline this year would be the biggest drop in seven eight years (apparently math poses its own set of difficulties), simply because gold has been about the only asset class to post gains in each of the previous seven.
Despite what the folks at Kedia Commodities might think, a negative result for gold this year is anything but assured. The yellow metal is down about six percent in 2008, $52 below where it began the year, and December is almost always a favorable month.
Wouldn't it be funny if, when all is said and done in 2008, gold is one of the handful of assets posting a gain for the year?
5 comments:
You wrote: "Wouldn't it be funny if, when all is said and done in 2008, gold is one of the handful of assets posting a gain for the year?"
In this global financial crisis the better question may be: "Isn't it odd that gold has not posted a gain considering it is viewed as the safe-haven of all assets?"
Kevin
www.bullinachinamarket.com
I don't know - I've never thought much of the "safe haven" reasons to buy or own gold.
When I wrote that I was thinking more of your typical 401k investor who sold all his stocks in October and is now trying to figure out how to make more than two or three percent on his money.
Effectively, gold has already been the safe haven for anyone who has been accumulating for more than a year. Nothing goes up all the time. This deleveraging will not last forever and it will rise again vs dollar/yen too.
Gold is up 24% for me so far this year, but I exchange my labour for AUD. Which one would you prefer ? Yes, USD would have been better, but let's be frank, not many were expecting such a rise since mid year, or the AUD shorting by the Oz govt through October.
Here's the misleading headline for today, 12-3-08:
"Productivity Growth Better Than Expected in 3Q"
http://biz.yahoo.com/ap/081203/economy.html
Actually, productivity slowed from 3.6% to 1.3%. And, wages rose at 2.8% versus a 2.6% decline last quarter.
So, productivity was down dramatically and wages were up even more dramatically despite the misleading headline.
This is just another example of how 'figures lie and liars figure.'
It's hard to understand if the media are that stupid or are actually willing participants in some kind of huge conspiracy to only print good economic news.
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