Pink's Bottom Line on Media, Money and Sports

Spotting fake news, ETF inflows and the Philadelphia 76ers

In today’s newsletter, I discuss spotting fake news, ETF inflows and the Philadelphia 76ers.

MEDIA: Spotting Fake News

The average US media consumer isn’t very good at spotting fake news, according to a study by the Proceedings of the National Academy of Sciences as reported by CNN.

While nearly nine out of ten of the more than 8000 surveyed said they were able to spot fake news better than the average person, roughly 75% overrated their ability to do so, according to that study as reported by CNN.

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Those are worrying results as it appears that Americans don’t differentiate as well as you might expect between real and fake news stories.

That has broader implications as it suggests that fake news stories could have more potential to be shared by media consumers, which, in turn, could lead to more widespread distribution of fake news stories.

MONEY: Exchange Traded Funds

Investors continue to pour money into exchange traded funds (ETFs), according to data from ETF.com.

Net inflows into ETFs last week totaled $24.1 billion bring the net inflows for the year so far to $393.5 billion, according to ETF.com. For some context, during the same time period in 2019, net inflows totaled $137.9 billion.

(Note: For those unfamiliar with ETFs, they are similar to mutual funds except that they trade on exchanges like stocks or other securities.)

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Notably, an ETF with a focus on Europe attracted some of the most net inflows in the past week though US stock index ETFs remained the most popular choice for ETF investors.

While many European and US stock indices are hovering around their record highs, it still appears that ETF investors still favor equities despite these lofty levels.

It is worth watching whether these inflows are sustainable particularly if either European and US stock markets suffer meaningful declines in the coming months.

SPORTS: The NBA’s Philadelphia 76ers

The NBA’s Philadelphia 76ers, the top seed in the Eastern Conference, lost their first round playoff game last night to the Washington Wizards though Philadelphia does hold a 3-1 lead in that best-of-seven series.

In last night’s game, Philadelphia’s superstar center Joel Embiid sustained an injury in the first quarter and didn’t play the remainder of the contest. Also, Embiid might not play in tomorrow night’s Game 5 of that series.

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While Embiid’s injury is a real worry for the 76ers, the team probably should be concerned about its other superstar, Ben Simmons, for a different reason.

Simmons went five for 11 at the free throw line in last night’s game, and for the series, Simmons is shooting an astonishing five of 20 from the line.

His free throw shooting quickly has become a liability for Philadelphia, particularly in the fourth quarter. In fact, in last night’s game, the Wizards purposely and repeatedly fouled Simmons in the fourth quarter just to send him to the line.

As such, if Embiid doesn’t fully recover and if the free throw shooting of Simmons doesn’t improve, the 76ers won’t make it past the second round of the playoffs where they would face the Milwaukee Bucks.

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Jeremy Pink is currently COO of Geniecast, a leading virtual content and experience company. He is the former CEO of private-equity backed Broadcast Sports International where he helped lead the company to a successful sale and exit during his tenure there. He is also a former CNBC television executive in New York, London and Singapore.

The information contained in this communication is strictly for general informational and entertainment purposes and is not meant to be construed as financial, investment, tax, or legal advice. This communication is not a solicitation to buy or sell any securities. I am not a financial advisor or offering professional advice of any kind. Users should not act upon the content or information found within this communication without first seeking professional advice appropriate for their individual situation. Decisions based on information contained in this communication are the sole responsibility of the user, and use of this communication and its contents constitutes an explicit understanding and acceptance of the foregoing disclaimers.

(Newsletter Editor: Karina Pink)