We have begun to receive requests for donations and support from 2016 presidential candidates. This morning, in our e-mailbox was a note from “Carly for America.” The point is that elections, markets and the media on the whole are in your face 24 hours a day, 7 days a week and 365 days a year. Willingly or unwillingly you are endlessly bombarded with emails, tweets, Facebook posts and ads on cable media. Anyone who is connected is fair game to be attacked to boost ratings, garner votes, gain support or pitch a product.
This is the case for business news as well. Today, the slowing economy in China, as well as the manipulation of its currency, moves to the front burner while Greece, domestic corporate earnings and the question of “when will the Fed hike interest rates” simmer as back-burner issues. These days, the hype leading up to the monthly Nonfarm Payroll Report can only be described as “Super Bowlesque.” We ask, does a ¼-point interest rate increase deserve this type of media attention?  Chicken Little’s claim that the sky is falling has nothing in comparison to the daily drumbeat of potential financial bubbles or stock market woes.
Old line and older line media’s future has been questioned as the unbundling of cable services becomes more prevalent.  The millennials’ choice of media consumption no longer begins and ends with a television.  However, we do believe that the production of content will remain the most important mode of delivery of the message (at least until computers prove they can act).
The 2016 presidential election season—which, by the way, begins earlier and earlier every cycle—will be interesting in more ways than simply determining who will be our next President. It will be fascinating to see how candidates choose to spend ad dollars. Political commercials on television may become secondary to other forms of contact. Candidates will be approaching us with tweets and Facebook likes rather than 30-second spots. It may be only a matter of time before a drone delivers those highly anticipated campaign flyers from your local town alderman to your front door looking for votes.
Keep an eye on the election process and how you receive vote solicitations. It could be a key indicator of the future of media in the United States and which media companies will be leading the way. Specifically, it is a battle of the old—believe it or not represented by Walt Disney Company (DIS), CBS Corp (CBS), Twenty-First Century Fox (FOXA), Time Warner, Inc. (TWX) and Comcast (CMCSA) versus Netflix (NFLX), Facebook (FB), Twitter (TWTR), and Google (GOOGL).
Always keep in mind that no company is safe from progress and that investing is not a static environment. You shouldn’t review your portfolio merely on a quarterly basis.  The stock market does not experience volatility merely because it is the end of a quarter.  Some industries evolve slowly and perhaps, as described above, some potentially in rather quick fashion. Review your portfolio as is warranted.
Please note that all data is for general information purposes only and not meant as specific recommendations.  The opinions of the authors are not a recommendation to buy or sell the stock, bond market or any security contained therein.  Securities contain risks and fluctuations in principal will occur. Please research any investment thoroughly prior to committing money or consult with your financial advisor. Please note that Fagan Associates, Inc. or related persons buys or sells for itself securities that it also recommends to clients.  Consult with your financial advisor prior to making any changes to your portfolio. To contact Fagan Associates, please call 279.1044.


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