What is the Solution?

Noise in the media

While driving, I pass the time listening to the radio and the business news. Over the past few weeks, a trend in how the ‘news’ is broadcast became very noticeable to me.
Each of the past 4 weeks has had a different topic that commentators, analysts and pundits have focused on. First was the impact of the proposed increase in corporate taxes and the America Jobs Plan (infrastructure). The following week was the proposed personal income tax changes (increases for some) and the American Families Plan. The next weeks subject was the employment report released by the Labor Department and how stimulus has affected the job market and the economy. And finally, last week was inflation week. This coincided with the release of the latest numbers of the Consumer Price Index.

All of these topics are important and can provide much information to the investor. But, the commentators, analysts and pundits on the radio all discussed how these issues can create a problem for investors. I kept listening in the hope that someone on the radio could help investors with these ‘problems’ and it didn’t happen.

How to “solve the problem”

At Prato Capital, we refer to this as noise. We prefer to offer solutions and ask you to “tune out the noise.”

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