Sure, but to clarify — I’d just disagree it’s actually a *political* bias as much as it an actually generic *herd* bias.
Let me preface this by saying that A)I’m not some irrationally exuberant BUY THE DIP bot, nor B)am I someone who considers the markets a substitute for the broader economy/impact on individual pocketbooks, NOR C)am I ever a doomer....
However, I’d give you 2022 as Exhibit A as evidence of the “herd” — not “political” bias, at least specific to the idea of financial reporting.
As I would think anyone invested remembers — 2022 was a bad market year and the financial reporting was recession alarm bells and a market crash. Was that political bias in financial reporting against the ‘rats and sleepy joe?
No doubt - raging inflation hurt the public.
However, from a financial markets perspective? I just wasn’t seeing problems in the 2022 10-Qs and 10-Ks. Certainly, some warning signs to pay attention to...
But, it just goes to my broader point: It wasn’t *political* bias, it was *herd* bias. The wise investor in 2022 didn’t run scared - and got rewarded in 2023 and 2024.
Like I said, I keep my politics and money in separate rooms. Always have. Hasn’t failed me yet.
Truthfully, I come to FR to get financial news.
Why? Because I get a good cross section of left, right, and utterly daft forecasting. My favorites are the doomsters who push gold and calamity while accepting fiat currency as payment.
It also helps when you realize there are people peddling ignorance as wisdom, and are actually pimping their own stuff. Here’s one of my favs, pimping for NewsBusters (and…upon investigation, his own articles): https://freerepublic.com/focus/bloggers/4137820/posts?page=24#24
FR is the demolition derby of news. That’s why it’s so good.
All that said, 10-Ks, 10-Qs, 8-Ks, and other filings are a goldmine. THAT is good stuff but, sometimes, a good company and a good investment can be two different things. It also depends upon your own risk appetite. But that’s beyond this post.
The other “problem” with financial is 1) you have to know how to read them, and 2) you have to cut out the mindless chatter about firms being all woke zombies shilling for the WEF.
Debt to EBITDA is not a trade route. But if you can understand that receivables turnover is not a type of Pop Tart, you’re on your way.
Sound advice for sure.