The communication innovations we have around us today like the internet, financial newspapers, and special interest television channels centered on investing like CNBC certainly are a high speed pipeline of nonsensical chatter. Each one of these sources of information imply that there is absolutely no shortage of media people trying to answer our questions concerning the currency markets and specific stocks. You must remember that the news media are constantly competing to survive against other stuff you can watch. Should they don't always sound like they know exactly what is going on then you won't watch their presentations. If you don't tune to their show then their ratings go down. If their ratings go down they get fired and their show gets cancelled.
Therefore financial journalists are in the business enterprise of finding great stories and sounding like authorities regardless of what. The stock market is a fantastic place for them to find out news 'scoops' to feed to the general public. They don't really check their facts perfectly and sometimes not at all. Therefore if
festival wants to feed you a type of bull manure then all they have to do is maintain good connections with financial journalists, sponsor an investment show, or outright buy an investing TV channel like Jack Welch the CEO of GE did when he create CNBC. What a great way for inside executives to control the flow of news information to the general public then to actually own among the only financial news channels...but not so great for you!
These journalists also kick up the fire by bringing in so-called 'experts' to talk about each side of some topic that real experts would not consider important.
This just makes it even 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 only confuse and misdirect the eye of most individual investors in the general public. Even worse which means that the financial press allows overpriced stocks to be recommended through analysts in the within web that inside executives are dumping on the public because they are trying to get out. This actually happened near 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, Prof. Bob Shiller, Ph.D. is specially harsh on the media in his book "Irrational Exuberance." Dr. Shiller is one the economists that Alan Greenspan respects most and where he got the term "Irrational Exuberance." He portrays the media as sound-bite-driven where superficial opinions are preferred over in-depth analyses. I agree whole heartedly with him and contend that it is also done just because the industry would rather have the retail investor confused and emotionally pliable to get you to buy and sell if they want with total disregard for your best interests!
People who had invested their life savings in the currency markets were cheated in the stock market because the financial news media and analysts were hyping up just what a great buy stocks were towards the top of the market in 1999 and 2000. At the same time inside corporate executives were selling out everything they had. What is amazing is that our federal government by means of the Security Exchange Commission never did a thing about it. There was never a blanket case taken or an outcry that the vast majority of the inside executives had somehow magically sold out of the market six months before the market crashed.
Here is the valuable tip I want you to consider: when you are a beginner investor it's important that you don't WATCH THE FINANCIAL NEWS OR BROWSE THE FINANCIAL NEWSPAPERS! Don't let the stock market industry lead you around by the nose like livestock to the slaughter house. Don't pay attention to what they want one to listen to. You should focus on learning what is important in the currency markets and the mass media will only confuse you until you have educated yourself.
Recommended reading:
1. Mahar, M. Bull! A BRIEF HISTORY of the Boom, 1929-1999 (New York, HarperBusiness , 2003)
2. Shiller, R., Irrational Exhuberance, (New York, Broadway Books, 2000)
Welcome in store of mimosastore86
