Have you ever wondered why there is so much bad news out there?
Maybe it’s because people find bad news more interesting than good news.
That applies to property, the economy, politics, and everything else.
A recent study that I read concluded that on average, people pay more attention to negative news than positive news.
I’ve found that blogs and podcasts with subject lines that are more negative get more attention.
The problem is that people do have a bias toward negative news, and if you have that tendency, it’s going to affect the way you think, the way you feel, and the actions you take.
Remember, your thoughts lead to your feelings, your feelings lead to your actions, and your actions lead to your results.
Pete Wargent and I discussed why those bloggers who are continuously negative about property and our economy get so many more followers than the positive people, and that’s what we’ll talk about in today’s podcast.
We’ll talk about how you can overcome this negative bias, what is causing it, and how we can move forward in the new year and take advantage of all of the positive things that are happening.
How negative news affects us as businesspeople, investors, and entrepreneurs
Turn on the news these days, and you’d be forgiven for thinking that the world is about to come to an end.
Negative and bad news seems to surround us everywhere we go.
The problem isn’t just that bad things re happening around the world, but it’s partly that our brains are wired to pay more attention to unpleasant news. This is called negativity bias.
How does this affect us as investors, businesspeople, and entrepreneurs?
There’s a strong body of evidence that demonstrates the human tendency to prioritize negative things.
We’re hardwired to respond to negative words and negative events.
Negative headlines affect the way you think, the way you invest, and whether or not you’re willing to take risks.
There are different dynamics when it comes to finance and the economy, as opposed to subjects like war or crime.
Schadenfreude is a huge driver of interest in financial and economic topics. That’s because people understand that there are two ways to get ahead of your peer group: either you succeed, or they fail.
Some people take a curious comfort in negativity or the economy struggling and falling on hard times. That’s because most of us believe that we’re better than average, and negative economic news can appear to confirm this.
In reality, success tends to get skewed toward people who take action.
Another factor is the tendency to use social media as a news source.
This can obscure your perception of reality. After all, what you’re seeing are other people’s highlight reels.
You don’t see the things that wind up on the cutting room floor.
If you want to be successful, it’s more effective to follow people who’ve achieved what you want to achieve and emulate them than to fixate on negative news.
People are driven by the need to be right or contrarian, but you miss out on a lot if you’re consistently negative.
It’s also important to remember that news is about things that happen, not things that don’t happen.
In other words, no one reports on wars that don’t break out, or economic crashes that never occur.
Herd mentality kept us safe in the old times, but it’s not the best investment strategy.
If you do only what the average person does, you’re likely to get only average results.
There are plenty of good things happening out there, but you might have to consciously look for them.
If you look for the good things, you’ll find them.
Links and Resources:
Join Michael Yardney and a group of Australia’s leading experts at his annual Property and Economic Market updates – in Sydney, Brisbane and Melbourne Use the coupon code: PODCAST and come as our guest
Some of our favourite quotes from the show:
“It’s the developers that are going to build all of those big apartment buildings that will allow more of them to buy homes in the first place.” – Michael Yardney
“Those who take action, can become wealthy.” – Michael Yardney
“Despite us thinking we’re rational, we’re not. We think irrationally.” – Michael Yardney
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