Herd on the Media (Yes Herd!)
March 7, 2007 8:59 pm
There is way too much weight put on the comment of only a few that are in the media limelight. Remember, only a few years back, some of these same individuals were actually fired from their TV and RADIO positions because they were found to be profiting from their own comments.
While there are also excellent commentators and hosts, none of them are a replacement for individual research. Herd mentality has been in play for some time and that is one of the serious drivers to this markets volatility, Looking long term, some of the more popular comments made recently on a few of of the more popular shows have been merely reaction to what happened rather than forward looking. All of a sudden everyone is saying that they felt that we were in all saying that we were well overdue for a correction. COME ON!
I cannot remember a single significant comment prior to last Tuesday for anyone predicting a big drop. It is easy to be a wall street deckchair quarterback.
And when did the TV and radio hosts become the experts? I thought they were there to report, not to advise.
Let’s not feed into the medias own excitement about themselves.
Take a listen to Episode 2 of The Disciplined Investor Podcast for more on this rant. You will even hear an actual taped conference where Jim Cramer gave 10 stocks to own for the new millennium. That was in March of 2000, seven years ago. See what he predicts (it is scary!)