Invest
How ‘fake news’ can impact your portfolio
In an age where some online media can be deliberately deceptive, investors need to apply more critical thinking than ever before.
How ‘fake news’ can impact your portfolio
In an age where some online media can be deliberately deceptive, investors need to apply more critical thinking than ever before.
‘Fake news’ is a term that gets thrown around a lot these days, especially by the US president Donald Trump.
But the real definition is not articles that have genuine mistakes or an opinion with which the reader disagrees, but a disturbing new trend where digital media companies are actively disseminating information they know to be false, for financial or political reasons.
News articles have long been a source of quality information for investors, who have sought to make informed investment decisions off the back of economic or political developments that affect markets, companies or sectors.
But with the advent of fake news, investors need to be especially careful, no longer able to rely on something just because it says the word ‘news’ on the masthead and looks legitimate.
This is the view of fund manager Raj Shant, a portfolio manager at Newton Investment Management, which is part of the BNY Mellon group.
In an analysis article published by Investor Daily, Mr Shant argued that fake news – along with that other favourite term of Mr Trump, ‘alternative facts’ – pose a threat to retail investors.
“Today, there is a proliferation of information, a good portion of which is unreliable,” Mr Shant said.
“We believe this increases the premium on trustworthy and quality providers of information, and on those who can interpret it.
“Fake news and alternative facts may be a very modern development in the battle for eyes and ears, but when it comes to investing, we believe the tried and tested methods of analysis still stand the test of time.”
The onus is now on investors to ensure they are verifying information and cross-checking facts, Mr Shant said, adding that social media can create “echo chambers” where investors are not getting access to balanced information.
Governments in Europe have proposed potentially cracking down on fake news operators. It remains to be seen whether similar legislative moves could occur Down Under, but in the meantime it’s best that investors apply critical thinking to all information and keep in mind that not all online media content is created with good intentions.
RELATED ARTICLES
Property
Australia’s mortgage knife‑fight: investors, first‑home buyers and the new rules of lender competition
The mortgage market is staying hot even as rate relief remains elusive, with investors and first‑home buyers chasing scarce stock and lenders fighting for share on price, speed and digital experienceRead more
Property
Breaking Australia’s three‑property ceiling: the finance‑first playbook for scalable portfolios
Most Australian investors don’t stall at three properties because they run out of ambition — they run out of borrowing capacity. The ceiling is a finance constraint disguised as an asset problem. The ...Read more
Property
Gen Z's secret weapon: Why their homebuying spree could flip Australia's housing market
A surprising share of younger Australians are preparing to buy despite affordability headwinds. One in three Gen Z Australians intend to purchase within a few years and 32 per cent say escaping rent ...Read more
Property
Tasmania’s pet-positive pivot: What landlords, BTR operators and insurers need to do now
Tasmania will soon require landlords to allow pets unless they can prove a valid reason to refuse. This is more than a tenancy tweak; it is a structural signal that the balance of power in rental ...Read more
Property
NSW underquoting crackdown: the compliance reset creating both cost and competitive edge
NSW is moving to sharply increase penalties for misleading price guides, including fines linked to agent commissions and maximum penalties up to $110,000. Behind the headlines sits a more ...Read more
Property
ANZ’s mortgage growth, profit slump: why volume without margin won’t pay the dividends
ANZ lifted home-lending volumes, yet profits fell under the weight of regulatory and restructuring costs—an object lesson in the futility of growth that doesn’t convert to margin and productivityRead more
Property
Rate pause, busy summer: where smart capital wins in Australia’s property market
With the Reserve Bank holding rates steady, the summer selling season arrives with rare predictability. Liquidity will lift, serviceability stops getting worse, and sentiment stabilises. The ...Read more
Property
The 2026 Suburb Thesis: A case study in turning trend lists into investable strategy
A new crop of ‘suburbs to watch’ is hitting headlines, but translating shortlist hype into bottom-line results requires more than a map and a mood. This case study shows how a disciplined, data-led ...Read more
Property
Australia’s mortgage knife‑fight: investors, first‑home buyers and the new rules of lender competition
The mortgage market is staying hot even as rate relief remains elusive, with investors and first‑home buyers chasing scarce stock and lenders fighting for share on price, speed and digital experienceRead more
Property
Breaking Australia’s three‑property ceiling: the finance‑first playbook for scalable portfolios
Most Australian investors don’t stall at three properties because they run out of ambition — they run out of borrowing capacity. The ceiling is a finance constraint disguised as an asset problem. The ...Read more
Property
Gen Z's secret weapon: Why their homebuying spree could flip Australia's housing market
A surprising share of younger Australians are preparing to buy despite affordability headwinds. One in three Gen Z Australians intend to purchase within a few years and 32 per cent say escaping rent ...Read more
Property
Tasmania’s pet-positive pivot: What landlords, BTR operators and insurers need to do now
Tasmania will soon require landlords to allow pets unless they can prove a valid reason to refuse. This is more than a tenancy tweak; it is a structural signal that the balance of power in rental ...Read more
Property
NSW underquoting crackdown: the compliance reset creating both cost and competitive edge
NSW is moving to sharply increase penalties for misleading price guides, including fines linked to agent commissions and maximum penalties up to $110,000. Behind the headlines sits a more ...Read more
Property
ANZ’s mortgage growth, profit slump: why volume without margin won’t pay the dividends
ANZ lifted home-lending volumes, yet profits fell under the weight of regulatory and restructuring costs—an object lesson in the futility of growth that doesn’t convert to margin and productivityRead more
Property
Rate pause, busy summer: where smart capital wins in Australia’s property market
With the Reserve Bank holding rates steady, the summer selling season arrives with rare predictability. Liquidity will lift, serviceability stops getting worse, and sentiment stabilises. The ...Read more
Property
The 2026 Suburb Thesis: A case study in turning trend lists into investable strategy
A new crop of ‘suburbs to watch’ is hitting headlines, but translating shortlist hype into bottom-line results requires more than a map and a mood. This case study shows how a disciplined, data-led ...Read more
