Steadfast FinancesCNBC's Goal: Breed Confidence In The Markets?

CNBC’s Goal: Breed Confidence In The Markets?

Filed in Investor Psychology 0 comments

As a long time viewer of CNBC, it’s becoming very difficult to listen to the “sell the hope” meme…

[Guest #2 (Mike Rubino) suggests markets are in a Fed induced stock market bubble and Dow Jones could sell off.]

Quote from Guest #1 (Scott Redler): I think that’s an irresponsible thing to say because that scares people out of the market. Saying the Dow can go to 4,000 might make people not want to reinvest and at this point, we’re trying to breed confidence in the markets and we’ve had a nice multi-year move and people can make money in the markets if they do it the right way.

So… there is some sort of initiative or campaign put in place to breed confidence among investors to get us back into the markets? And would this mean the markets are really just a evolving confidence game where the loser is left holding the bag?

This gent is, from his own words, just stated that it’s irresponsible of financial professionals to tell retail investors to expect the unexpected — even though we just experienced the greatest “unexpected” stock market crash in recent history and nearly went into a second Great Depressionbecause he wants us to think positive, that everything is hunky dory, and not to worry our pretty little heads about another sell off in the market.

Who in their right mind wouldn’t have wanted to hear such valuable advice in this back in 2007 before the sh*t hit the fan? Moreover, it’s this sort of doomsday advice that high net worth investors pay 2% and 20% to hedge funds to prevent in the first place, and yet, many of them still got it got wrong because they were still clinging to the delusion that all is well.

Bottom line: when someone on CNBC is telling giving you the “all is well” sales pitch and you should buy buy buy, take it with a grain of salt and check your Kool-Aid for roofies.

So think for yourself, and ask yourself who stands to profit from you making your investments. Otherwise, there is a good chance you’re getting duped by following the herd.

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Posted by CJ   @   4 January 2011 0 comments
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