The communication innovations we now have around us, such as the internet, financial newspapers, and special interest channels focused on investing like CNBC are a high speed pipeline of nonsensical chatter. All these sources of information mean that there is no shortage of media people trying to answer our questions about the stock market and specific stocks. You have to remember that the news media are constantly competing to survive against other things you can look. If they do not always sound like they know exactly what is going on then you will not watch their presentations. If you do not tune in their actions than their ratings go down. If their ratings go down they fired and her show is canceled.
This means that financial journalists are in the business of finding great stories and sounding like authorities no matter what. The fair is to dig up news 'scoops' to feed to the public. A great place for them They do not really check their facts very well and sometimes not at all. This means that if some insider wants to feed you a line of bull manure then all they have to do is to maintain good relationships with financial journalists, sponsors see an investment, or outright an investing TV channel like Jack Welch, the CEO of GE, buy did when he set up CNBC. What a great way for executives within the flow of news information to the public then the control to actually own one of the only financial news channels ... but not so great for you!
These journalists also kick up the fire to bring in 'experts' to talk about each side of some topic that real experts would not consider. Important by This just makes it all the more confusing for the public to understand what is important when buying or selling a stock. Shows on CNBC like 'Closing Bell', 'Kudlow & Company', and 'Mad Money' do nothing but confuse and mislead the attention of most individual investors in the audience. Worse, this means that the financial news media allows overpriced stocks recommended by analysts in the inside web that inside executives dumping on the public because they are trying to get out. This actually happened at the top of the bull market in 1999. For a great historical description of what happened read Maggie Mahar's book entitled "Bull. "
The famous Yale University economist, Professor Bob Shiller, Ph.D. is particularly hard on the media in his book "Irrational Exuberance." Dr. Shiller is one of the economists that Alan Greenspan respects most and where he coined the term "irrational exuberance. "He portrays the media as sound-bite-driven where superficial opinions are preferred over in-depth analyzes. I whole heartedly with him and contend that it happens, just because the industry would prefer the small investor confused and emotionally pliable to you to buy and sell when they want with total disregard for your interests!
People who had invested their savings in the stock market were ripped off in the stock market because the financial news media and analysts were hyping what a great buy stocks were at the top of the market in 1999 and 2000. At the same time inside corporate executives were selling everything they had. What is amazing is that our federal government in the form of the Security Exchange Commission never did a thing about it. There was never a blanket case taken or an outcry that almost all of the inside executives had crashed six months for the market to magically sold out of the market.
Here is the valuable tip I can consider in this edition of 'The Wallet Doctor ": if you are a beginner investor it is important that you NOT THE FINANCIAL NEWS NOT watch or read FINANCIAL NEWSPAPERS! Do not let the stock market industry lead you around by the nose like cattle to the slaughterhouse. Do not listen to what they want you to listen to. You should focus on learning what is important in the stock market and the mass media will only confuse yourself until you have trained. Also, remember that I will show you how to focus on what is important for stocks that are priced low, but probably identify lower, because the insiders are buying them and I'll show you when to sell when the same insiders probably dumping the same stocks on the public in my course "The Blue Collar Base Bonanza - What the insiders [certainly] not want you to know!" You can get more information about the course course website get
Recommended reading:
1. Mahar, M. Bull! A History of the Boom, 1929-1999 (New York, Harper Business, 2003)
2. Shiller, R., Irrational Exhuberance, (New York, Broadway Books, 2000)
I wish you great abundance in your life that you deserve through what you are and remember that happiness is found only in the precious present moment!
Dr. Scott Brown, Ph.D., the Wallet Doctor, is a successful futures trader, real estate investor, and stock investor. Dr. Brown has a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business aka Thunderbird. His 1998 articles in technical analysis of stocks and commodities were prophetic in predicting an impending stock market crash. He has helped many people profitable investors by looking out over many years to spot stocks that are low and ready to rise in the new bull market. In 1998 he was shouting to the world? Get out? of the fair, but now he is shouting to everyone that it's time? get? The Wallet Doctor is not only sought after for investment advice and coaching to invest in stock but also in futures trading and real estate investing. For more information visit Dr. Brown? S site or sign up for his investment tips
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