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Why Watching CNBC Could Destroy Your Portfolio

InvestorEducation / Learning to Invest Mar 02, 2009 - 12:41 AM

August 2007 - Dow Jones 13,000 - What did the CNBC Talking Heads Recommend Investors Should do ?

Ned Riley - Himself 75% Invested in Stocks, recommends investing into the Big Banks and a viewer nearing retirement should go to 90% invested in stocks. Believes US stocks will rise by 9 to 11% per annum for next 10 years. If you followed Ned's advice your portfolio has now been wiped out!

Vern Haden - Waffles on without saying anything other than investors should remain allocated as is.

Peter Schiff - Poor Peter, right on the economy and financial stocks but wrong on many of his other investments - Says the Dollar will collapse, interest rates will go sky high, and invest in foreign stock markets and commodities, as of writing only gold has shined from Peters picks.

Lessons

1. If you watch CNBC, then TURN OFF THE VOLUME. That single act will improve the chances of your portfolio surviving more than anything else.

2. EDUCATE YOURSELF - Investment managers skim a % off your funds invested with them, usually regardless of performance. Investors need to take responsibility for their investments, if they cannot then leave them in cash deposits.

By Nadeem Walayat
http://www.marketoracle.co.uk

Nadeem Walayat has over 20 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis specialises on the housing market and interest rates. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 250 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

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Comments

TraderJoe 02 Mar 09, 16:58	Ned Riley Wrong As Usual Back on September 23rd 2008 he was at it again. He is clearly a perma bull who does not have a cliue what he is talking about. http://in.truveo.com/Market-analysis-with-Ned-Riley/id/288230388004924459 After the volatility of 2008 he is recommending investors stay invested for the long-run, long-term opportunities. Its a wonder that he has any clients left.
D.morneyfat 05 Mar 09, 09:01	CNBC broker comment How do these PHuckas get away with it.I've had literally hundreds of broker firms cold calling me.I've learned to use the "f" word.
thowze 05 Mar 09, 18:38	Sage Piece of Advice These talking bobbleheads only do what their corporate sponsors tell them to do, which 99.99% of the time is not in the best interest of the investing public. For anyone learning to invest, this article is good advice!
GolfGuy69 06 Mar 09, 05:47	How To Make Money Whatever these CNBC Bozo's tell you do the opposite, your portfolio will be fine. They tell you to buy a particular stock - SELL It Short They tell you to sell a particular stock - BUY This investment stuff is easy!
Mike S 08 Mar 09, 10:16	CNBC You were entirely too kind to CNBC, given how horrendous that shill network is. If you watch You Will lose money. You were especially too kind to Cramer. I'm sure you recall Cramer told people to stay in BSC and LEH just a few days before they went belly up. BTW, I don't watch CNBC. I only know from researching archives for a book that will blast the media. http://www.youtube.com/watch?v=gUkbdjetlY8 http://www.youtube.com/watch?v=bc8u8tX2jzI&feature=related Or how about Kudlow and his idiots??
delatex 08 Mar 09, 22:55	CNBC's biggest JOKER. I think you missed the biggest joker of them all, Mr. Larry (never gets it right) Kudlow. A year ago, when the economy and market were clearly in trouble, he was singing his Goldilocks song, with the Goldilocks figure dancing across the bottom of the screen. Six months ago when the economy and market were crashing, he was stating that "they gave a recession and no one came". Now, when a number less negative than a so called expert guessed, he jumps up and down shouting, "MUSTARD SEED". Yes, he knows the lingo and he has memorized some economic equations and relationships, but he just doesn't know how to interpret the data, and of course, everything he says is biased by his overwhelming republicanism.

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