We have all questioned the things they allow on prime time TV today – especially the foul language, blood and guts, nudity etc. We know that this can’t possibly be a good influence on children flicking through the channels. Yet we’ve all seen a movie or TV show in which there was a hairstyle we wanted to imitate, word we wanted to use or car we wanted to buy. And we’ve all seen a movie or two that made us question our own relationships or lifestyle, whether it be positive or negative.

So how about the news media? Do you think it has an influence on how you act, what you say, or on the decisions you make? Sure it does! Do you think the majority of the things you hear on the news and see in the papers have a negative or positive bias? The fact is bad news sells five times faster than good news. So it’s no wonder that at least 90% of the content in any news media source is negative on a given day. ^1. Does it seem realistic that over 90% of what is actually happening in the world is negative at all times?

So let’s talk about reality. There is negativity. How could there not be when we have just experienced one of the most severe recessions in our world’s history? Recovery is never a smooth road and definitely one that requires extreme caution. To add to that… the efforts both Democrats and Republican parties to pull us through this mess have left everyone questioning the consequences of these efforts. After all, misguided government efforts may have prolonged the depression of the 1930′s and who’s to say current decisions might not factor into a double dip recession?

The thing is, the United States has always overcome economic and political obstacles and found growth again. Keep in mind, even a double dip recession is not the end of the world for investors. Remember 1980. Stocks recovered 68% from their lows, but subsequently lost 29% and remained low for almost 8 months. But, what happened after that? RECOVERY!

The news you don’t hear about on mainstream media is that there are undoubtedly signs of a recovery present today. Yes, it’s a modest recovery, but still a recovery. Remember as far as you walk into the forest, you have to walk out. This application is no different from the tangled web we wove over the past couple of decades. It is no secret that hearty economic health is still a few years away, but times are already better. To explain further:

Start with GDP growth. According to Kiplinger research you can expect this to be about 3.5% this year. This is superior to the last two recoveries in 1991 and 2002. Then let’s talk consumer confidence. The University of Michigan’s monthly reading shows we are at the halfway point back to the peak of 97 from the 55 we sunk down to. Oh and don’t forget about exports: They have expanding by more than 14% this year; the fastest rate since 1988. ^2.

So, what is the media talking about? Every item and statistic that is expected to be bad during this stage of the economic cycle. Here is your economic test for the day: What remains low during early recovery stages of the economic cycle? (Hint: Watch the news. What is their focus?) Answer: Unemployment, Housing, Commercial Real Estate, etc. Yes, these will take a while to recover. That’s why it is called a cycle. For instance, businesses are lean and mean now, which is why their profits were exceptional over the past year. But this can only go on so long before they will be forced to hire more workers to produce more goods, which will require more real estate. Oh, and these new hires can buy houses.

Deep down, we all know what’s best for us. Take our emotions out of our decisions and stay disciplined when it comes to investing our dollars. Remember, cash is king right now. Just think about all of the things on sale today that won’t be when the economy is booming in a few years. Will you miss out because you fell victim to the tone used by the news media? Think positive because things are looking to the positive no matter what the media says. And don’t forget to give this confidence to those friends and family members who you care about as well.

P.S. Check out the Economic Health Tracker by Kiplinger to see how far the economic recovery has progressed at www.kiplinger.com/links/recovery.

1.      Westacott, D. (2008, October 12). Be Aware of the Negative Influence of Newspaper and Media News. Retrieved June 22, 2010, from http://ezinearticles.com/?Be-­Aware-­of-­the-­Negative-­Influence-­of-­Newspaper-­and-­Media-­News&id=1576535

2.      The Kiplinger Washington Editors. (2010, June 11). The Kiplinger Letter Vol. 87 No. 24.