On 1 December, Oxford University Press announced that its coveted Word of the Year for 2025 was “rage bait.”
The term has gained popularity in recent years, particularly online, and is increasingly used in mainstream media to refer to deliberately provocative news stories.
As a proven tactic to drive content engagement, “rage-baiting” has the potential to affect our worldviews and maybe even our investments.
Rage-baiting aims to provoke anger to drive engagement
According to Oxford University Press, the definition of rage bait is “online content deliberately designed to elicit anger or outrage by being frustrating, provocative, or offensive, typically posted in order to increase traffic […] or engagement.”
You likely interact with online rage-bait headlines every day. These headlines respond to economic and political news by attempting to elicit anger from you, the reader. The goal is that this strong negative reaction will increase the article’s readership.
Alarmist headlines can persuade investors to sell shares in response to market drops that are, in reality, an everyday part of investing. These knee-jerk reactions to sensationalist headlines could significantly limit your ability to generate long-term growth.
2025 Autumn Budget “rage-baiting” led to a £6.7 billion investment outflow
The run-up to Rachel Reeves’ 2025 Autumn Budget saw a massive £6.7 billion outflow of investment (as the Independent reports).
Quoting figures for Calastone’s latest Fund Flow Index, the report confirms that the outflow took place over a period of six consecutive months from June to December. October alone saw £3.63 billion of disinvestment.
Some of this outflow may have been triggered by news outlets and social media sites citing rumours about the upcoming Budget. Many reports used strong language like “tax raids” and “bloodbath” when speculating about potential policies, even though many didn’t come to fruition.
For instance, headlines stoked fears about possible cuts to pension lump sum withdrawals, hikes to Capital Gains Tax, or the introduction of a wealth tax. There were also warnings of significant stock market disruption.
As the Independent reported, months before the Budget was announced in November, some investors moved their money to so-called “safe havens” – investments that expect to retain or increase in value during periods of market turbulence.
However, following the Budget, the UK stock market experienced strong growth. Reports from CNBC show that the FTSE 100 made history by breaking through the 10,000 level on the first opening trading day of 2026.
This means that investors who sold or moved their investments could have missed out on this growth and potentially jeopardised their wider financial goals.
A financial planner can help you manage your investment strategy
It’s all too easy to allow sensationalist headlines to stir your emotions. After all, it’s what they are designed to do. So, here are two key points to consider before making any major investment decisions.
1. Ignore the noise and take a long-term approach to investing
As you read above, the UK stock market did not collapse after the Budget, as some rage-bait headlines had insisted it would. Even if it had, though, selling off shares may not have been the right reaction.
Investments, for the most part, form part of your long-term financial strategy. They are designed to build your wealth over years and even decades. World events shake the stock market daily, and sometimes larger bumps occur, like the recent disruption caused by US President Donald Trump’s trade tariffs.
However, history tells us that the markets will normally bounce back; a month after the US trade tariffs were announced, the BBC reported that major US indices began to see an upturn.
While market volatility can be a cause for concern (and rage-bait headlines do little to allay investors’ fears), short-term fluctuations generally resolve in the long run. If you persist with your investment strategy rather than pulling out when the market dips, you may give your wealth greater potential for growth.
With a financial planner, you have professional support and advice throughout your investment journey, making sometimes complex investment decisions easier. Plus, if there is ever true cause for concern, your Milsted Langdon financial planner will let you know and help you make necessary adjustments to protect your investments.
2. Balance risk by diversifying your investment portfolio
The idea behind a diversified portfolio is simple: don’t put all your eggs in one basket.
If you invest only in one company, then your wealth is entirely dependent on that share value increasing over time. This is high risk – if the share price drops, so does the value of your entire portfolio.
However, dividing your investments across various industries, sectors, and countries effectively spreads your risk and could give your investments greater security. If one of your investments falls in value, another might rise, helping the overall value of your portfolio to remain stable.
So, if your portfolio is well-diversified, all you need do is relax and ignore the noise of sensationalist rage-bait headlines.
Get in touch
In a world of alarming headlines, Milsted Langdon Financial Services can help make sure your investments stay on the right track.
Please get in touch or email us at advice@mlifa.co.uk to reach one of our experienced advisers today.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.