Public relations professionals tell their clients to avoid headline risk at all costs. Columnist Jonathan Blumm once defined it thusly: "Negative information appears in one news source, which puts the company on the defensive, which feeds other sources, who run other negative stories, which the original outlet picks up. Which starts the cycle all over again."
Rob Reuteman, "Fallout for Janus and Qwest will likely linger," Rocky Mountain News, September 6, 2003
There's economic risk, which is what we've been having a whole lot of the last two years. There's interest rate risk Alan Greenspan wakes up in a bad mood and decides to raise them. There's competitive risk you own a store and Wal-Mart opens down the street. There's new-technology risk you're the king of the eight-track tape industry, for example. ...
And now we're hearing of yet another type of risk: headline risk.
The concept of headline risk apparently has been percolating in the background for a while, to judge from a quick scan of the term on Yahoo! But after seeing it used twice in one day last week, from two different sources about two different companies, one suspects "headline risk" is now climbing the best-seller list of popular business expressions.
Bill Virgin, "Real risk in 'headline risk' is ignoring it," The Seattle Post-Intelligencer, July 2, 2002
We prefer to stand aside from the Washington guessing game and invest in companies benefiting from knowable themes that have been our focus"niche plays, "Euro-industrials" and "destructuring" candidates. Investor's should avoid "daily headline risk" by steering clear of stock groups that will be subjected to vitriolic bashing by politicians.
Gus Giviskos, "Brokers view the markets: A.G. Edwards Princeton," Mercer Business, April 1993