|
Author: Dr. Scott Brown, Ph.D. Article source: http://www.opentopia.com/. Used with author's permission.
The communication innovations we have around us today like the internet, financial newspapers, and special interest television 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 stuff you can watch. If 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 into their show then their ratings go down. If their ratings go down they get fired and their show gets cancelled.
This means that financial journalists are in the business of finding great stories and sounding like authorities no matter what. The stock market is a great place for them to dig up news 'scoops' to feed to the public. They don't 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 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 set up CNBC. What a great way for inside executives to control the flow of news information to the public then to actually own one of 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 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 misdirect the attention of most individual investors in the public. Even worse this means that the financial news media allows overpriced stocks to be recommended through analysts in the inside web that inside executives are 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, Prof. Bob Shiller, Ph.D. is particularly 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 when they want with total disregard for your best interests!
People who had invested their life savings in the stock market were ripped off in the stock market because the financial news media and analysts were hyping up what a great buy stocks were at the very 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 in the form of the Security Exchange Commission never did a thing about it. There was never an blanket case taken or an outcry that almost all 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 in this issue of "The Wallet Doctor": when you are a beginner investor it is important that you DO NOT WATCH THE FINANCIAL NEWS OR READ THE FINANCIAL NEWSPAPERS! Don't let the stock market industry lead you around by the nose like livestock to the slaughter house. Don't 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 you until you have educated yourself. Also, don't forget that I show you how to focus on what is important to identify stocks that are low priced but unlikely to go lower because the insiders may be buying them up and I show you when to sell when the same insiders are likely dumping the same stocks on the public in my course "The Blue Collar Base Bonanza - What the insiders [definitely] don't want you to know!" You can get more course information on the course website at www.BaseBonanza.com.
Recommended reading:
1. Mahar, M. Bull! A History of the Boom, 1929-1999 (New York, HarperBusiness , 2003)
2. Shiller, R., Irrational Exhuberance, (New York, Broadway Books, 2000)
I wish you the great abundance in your life you deserve because of what you are and don't forget that happiness is found only in the precious present moment! About the author: Dr. Scott Brown, Ph.D., the Wallet Doctor, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds 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 a.k.a. 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 become profitable investors by looking out over many years to spot stocks that are low and primed for rise in the new bull market. In 1998 he was shouting out to the world to "get out" of the stock market but now he is shouting to everyone that it is time to "get in!" The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. For more information visit Dr. Brown's site at http://www.BonanzaBase.com or sign up for his investment tips at http://www.WalletDoctor.com
Where Real Estate Investing and Speculation Collide
Investing vs. Speculation is a collision of epic proportions! What's the difference? Lots. Read on. The difference can be the difference between big money and...
What is the Success Lesson in this Story?
One of my clients gave me permission to tell you his story. Jim called me 9 months ago and asked for help. For the last 5 years Jim desperately wanted to leav...
Beach Theme Bedroom
See how easy it is to get a designer beach theme look in your bedroom without shelling out the big bucks.
How to Start Your Own Band
Have you ever had a desire to start your own band? Do it today by following the three easy steps outlined in this article...
Home Equity Line of Credit – Great for Remodeling Projects
Home equity loans are great for financing home remodeling projects, such as adding a room. For ongoing projects with a lot of small purchases and an open-ended...
Mind and Self Hypnosis
The power of the mind is vastly more than most recognize.
The mind as healer, the mind as slayer, is much more than
a mere metaphor. Hypnosis is a tool that...
Year 2010: Permanent Employees No Longer Required
In a Short Period of Time, New Outsourcing Wave Called On-demand Sourcing Will Be Here to Change the Way People Work and Force Companies to Revisit Their Corpor...
How I Improved My Marriage Ten-Fold In One Evening
This article discusses practical ways to resolve conflict within a marriage. By applying these communication steps, you will discover how you can change your ma...
Contact Existing Customers To Increase Business Sales
One of the best ways to increase your sales and one that
won't cost you a lot or take a huge amount of time is by
selling more to your existing customers. This ...
1,000,001 Reasons To Connect With Your Audience
The goal of public speaking is to connect with your audience. to have a conversation. When you are making eye contact with one person, when you are having a c...
Motivating Teams
This section is an indispensable and practical guide to leading teams with expertise, covering subjects such as defining the skills required to complete a proje...
Balanced Scorecard Strategy Map
With the help of balanced scorecard strategy map, it is very easy to design the organization goals and build business strategies. Balance scorecard and strategy...
Treating Arthritis - Naturally
There are actually three common types of arthritis. These are Osteoarthritis which is the most common, affecting around 16 million Americans with an average age...
Your Gut Instincts & Ability to Get Along Quiz
Get along better, with more kinds of people, even and especially in difficult
situatyions and your attract more opportunity and less stress. Understanding gut...
Omega 3 Fatty Acids and Depression - A Natural Treatment
The unpredictability of anti-depressant drugs has caused much concern for many years, with a large number of doctors and patients questioning their use, and rai...
Apartment Inspection Checklist
Ready for moving in your new apartment? Inspect the new apartment using this checklist.
Business Center on the Internet
The Universal sales market, your own presence, office, or magazine on the Internet that operates around-the-clock, which you can control from anywhere!
The Faucet: A Deciding Factor
In the design of your new kitchen, the faucet can be one of the largest, most critical aspects of it all. In many cases, you will find that a beautiful one can...
Setting the Right Price
You don't have to have the lowest price to attract customers. In fact, underpricing can cost you customers. Attract the customers you want by pricing to reflect...
UAV Technology Ideas and Trends
We are seeing many top colleges and universities implementing Unmanned Aerial Vehicle UAV Programs along with their newest robotic engineering schools. One of t...
Media Training 101: Mastering the Television Interview
Are you winning the media game?
Crafts for Baby Shower Decorating
If you are an artistic or crafty person, then here are some great ideas for crafts to decorate for your baby shower.
Creativity in Trading
There are a few common characteristics that all creative persons possess (such as an openness to a variety of internal and external experiences and a driving ne...
Targeting Those Trouble Spots
Wouldn't it be great if you could get rid of that excess fat on your stomach or tighten up those hips and thighs? How many times have you tried diet and exerci...
|
Print this page