Dean of the School of Communications, University of Quinnipiac Chris Roche writes on MarketWatch.com about the over-importance of stock stories in the business media.
Rush writes: “Stock market coverage is a classic story that shows the current problem of business journalism. This content is only for those who have the financial capacity to invest and spend on business news content.
“According to a Gallup poll in April 2020, just over half of Americans – 55% – own shares, up from 67% in 2002. And according to the Federal Reserve, only 14% of American families have direct investment in individual stocks, which means that most people invested in the market do so through a mutual fund or retirement account.
“And the ownership of shares grows depending on how much money someone earns – 10% of the best on the scale of income own shares in about 90% of the time.
“During the 2020 pandemic, when many households lost income and wealth, high-income consumers benefited the most – and white families – benefited most from a 16.3% increase over the year in the S&P 500, a common barometer stock market activities. Fifty-seven percent of white families own shares, compared to 30% for black families and 14% for Hispanic families.
“Jack Murta notes in the Columbia Journalism Review: ‘Most Americans don’t deal with stocks close enough to guarantee a constant review of financial news, just as most people don’t need to check their 401 (k) every day.'”
Read on here. This is an excerpt from “The future of business journalism».