The media mirage: Lessons from the US election’s unseen realities
Dr. Francois Stofberg: Senior Economist at Efficient Wealth and the Managing Director of Efficient Private Clients.
The recent United States (US) presidential election, with Donald Trump’s landslide victory, has highlighted a stark disconnect between traditional media narratives and on-the-ground reality. Many mainstream channels projected Vice President Kamala Harris as the likely winner, shaping public sentiment and investor outlook. However, when results rolled in, the disparity between predictions and outcomes sparked a wave of doubt around whether the media truly serves to inform or merely to perpetuate agendas.
Media bias and economic repercussions
Media bias carries significant economic repercussions. For months, major networks confidently projected Harris as the favoured candidate, swaying public and investor perceptions. When the actual results contradicted these forecasts, it left many investors scrambling. The unexpected shift led to a surge in US markets as investors recalibrated for Trump’s renewed emphasis on deregulation and economic reform. Those who had leaned heavily on mainstream predictions to guide their investment strategies felt the impact of an unexpected market pivot.
This election reinforced that investors need to look beyond mainstream headlines. Relying solely on widely circulated media narratives leaves room for unanticipated risks, especially when those narratives fail to reflect reality. Today’s complex market landscape calls for diverse information sources and independent thinking, a need that this election vividly illustrated.
The new source of truth: X (formerly Twitter)
With legacy media’s objectivity under scrutiny, many are turning to platforms like X for unfiltered information. Elon Musk’s acquisition of X was a game-changer in this respect. Musk emphasises transparency and supports “uncensored truth”, creating a platform where grassroots journalism and independent voices thrive. Unlike traditional media, which is often influenced by advertisers or editorial boards, X offers real-time insights directly from the public, often giving a voice to those on the ground with first-hand perspectives.
For investors, X represents a valuable tool. Its unfiltered nature allows users to gain insights and gauge real-time sentiment directly, adding depth to investment research. Independent voices and citizen journalists on X are no longer the alternative; they are an essential component to forming a fuller, often more accurate, understanding of political and economic events.
“Draining the swamp” and bureaucratic reform
Trump’s victory speech, with its promise to “drain the swamp”, resonated deeply with many Americans. His administration has pledged to cut back bureaucratic red tape and simplify government, which he argues will enhance economic growth by removing barriers to innovation. For investors, these reforms could translate into new opportunities across industries previously bogged down by regulation, offering a landscape more conducive to business growth and competition.
Reducing bureaucratic “fat” aligns with the principles of economic efficiency and could spur expansion in the private sector. Trump’s plan to streamline government, remove regulatory burdens, and create a leaner public sector appeals to investors who see an overregulated environment as hindering progress and profitability.
Investor takeaways: Diversify and verify
In a media climate where traditional channels face a credibility crisis, the recent election offers a key lesson for investors: Do not accept headlines at face value. Platforms, like X, are helping to shift the power back to the people, making it easier for investors to verify information, diversify perspectives, and protect against bias in conventional reporting. Today’s market participants are learning that a well-rounded approach (embracing both traditional sources and platforms fostering open dialogue) allows for more informed and adaptable investment strategies.
Trump’s victory has opened the door for policy shifts that could spur economic growth, and Musk’s leadership at X has created a space for truth to emerge without editorial constraint. For investors, this is an era of recalibration, where staying informed means actively seeking out independent insights. The future of investing will belong to those willing to look beyond conventional narratives to find the real story.
