Friday, August 1, 2014

Puzzled by Investing Jargon?

As per Wikipedia, obfuscation is the hiding of intended meaning in communication, making communication confusing, willfully ambiguous, and harder to interpret. Most stock market experts and analysts are masters at obfuscation.

For instance, it has become old fashioned for business TV channels to refer to the market trend as bullish or bearish. They prefer to use terms like ‘risk on’ or ‘risk off’. Guess they think it makes them sound up-to-date or ‘cool’. But they end up confusing the viewer.

There are many terminologies used regularly in explaining economic policy measures and market movements that border on obfuscation. If you are one of those investors who don’t quite ‘get it’, don’t think you are in a minority of one.

In a recent series of articles at morningstar.com, an effort has been made to clarify some of the typical jargon bandied about by so-called experts. You can read the latest article here.

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