The Power of Fear Based Financial Propaganda

April 10, 2023

Months ago I embarked on drafting this weekly newsletter to share with my LinkedIn network hot market & marketing tips, my two favourite topics. At SmallCap Communications, I get to merge these two topics to provide pub-cos operating in the North American capital markets with marketing solutions to help them attract an investor audience. 

This means I monitor market AND marketing trends, which I usually LOVE. But sometimes – monitoring market trends can feel like wading through a sea of trash aboard a sinking ship with nothing more than a listless empty chip bag as a paddle. In other words, pointless (and a little gross). 

It’s been feeling a little like that lately, with various “experts” boldly stating contradictory opinions on the health of the economy and their forecasts for the future, with many intent on using fear to elicit reactions. 

Take, for example, a quick glance at what populates when we Google the USD. Now, I would like to share that I do research topics in more depth than a mere Google search, but in this scenario, each thread that populates can take users to articles from reputable sources sharing the opinions of economic professionals confirming each subject listed below. Many of the opinions shared contradict each other, despite the expertise of each professional. 

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So, when things stop adding up and panic begins to creep in, I like to bring it back down to the basic facts, and here are the basic facts to focus on as we enter a week rich with economic tension. 

  • The U.S. economy added 236,000 jobs in March, showing that hiring remains robust 
  • U.S. unemployment currently stands at 3.5%, which is pretty low and could be indicative of an inefficient economy BUT does show a healthy employment market
  • Chances of a 25-basis point rate hike next month are pegged at 70% 
  • Gold fell below $2000 this morning as a result of all the above 
  • The U.S. dollar rallied this morning, boosted by rising U.S. Treasury yields

In this game of teeter totter between gold and the USD, all eyes are on the CPI for March which will be announced this Wednesday. 

After a year of persistent inflation, we’re still hearing a lot of precious metals aficionados advocating for gold as a reliable hedge against inflation. 

Unsurprisingly, Peter Schiff, a U.S. economist and notorious gold supporter, is telling his followers to “Get Rid of Your US Dollars Now”.

If you’re feeling a little unsettled by all of this and are looking for ways to protect your investments, check out these 5 tips to help hedge against inflation

As we wait to see what Wednesday has in store for us, here are some interesting Tweets to provide some Monday musings: 

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I think we can all agree that there’s a lot of uncertainty at play in the market, and this uncertainty is generating a lot of fear. Many “advisors” are preying on this fear to lead scared individuals into making risky investment decisions. 

When it comes to your finances, always make sure to do your own research and consult multiple sources before making a decision. 

I hope today’s newsletter illuminated just how contradictory market news can be, and how important it is to not let fear-based financial propaganda cause you to spiral. If you’re feeling overwhelmed (which, many people are at the moment), get back to the basics. Trust in the facts. And zoom out!!! Economic turmoil is a constant – this isn’t the first time the economy is caught between a rock and a hard place, and it won’t be the last. 

For marketing solutions that are far more reliable than the state of the economy, connect with my team at SmallCap Communications. We keep our thumb on the pulse of everything that is happening in today’s capital markets, and provide customized plans to help our clients stay ahead of the competition.

Book your call with SmallCap today for marketing you can rely on – unlike the market.