If they gave out awards for trend following, CNBC would be a top contender. To wit, as the market (primarily the Dow Jones Industrials) began its run of new all-time highs at the end of March, CNBC began running the following promo, using clips of its various on–air persona;
- Sue Herera—“History in the making for the Dow Jones Industrial Average…”
- Announcer—“Another record-setting quarter for the Dow, up nearly 11 %….”
- Bob Pisani—“The rally goes on and on and on.”
- Announcer—“If history repeats itself, there’ll be strong gains ahead.”
- Brian Sullivan—“Every single time the Dow has been up 8% or more in the 1st quarter the year has ended positive.”
- Announcer—“Will you be ready? Stay with CNBC and stay one step ahead.”
The people at CNBC have a lot of nerve. For them to suggest, after examination of their spotty record, that staying with CNBC would keep an investor “a step ahead” is simply ludicrous.
Remember, this network and its minions have been arguing with this rally since the 2008/2009 lows. Following the trend on October 6, 2008, one of their key on air personalities, Jim Cramer, suggested selling would be well advised if you, as the investor, needed the money you had in the market any time in the next five years. Mind you this was after the S &P had already gone down over 30%. It did spike lower after Cramer’s warning, but within a couple of months regained most of its losses. The index is now about 50% higher than it was 6 October 2008. Admittedly, Mr. Cramer turned back to a positive track on the market after the lows of 2009:but, what he did the previous October was tantamount to yelling “Fire” in a crowded theatre.
Now we are suppose to believe in CNBC’s new enthusiasm for the market and their ability to give us guidance that might maximize our investment experience and keep us “a step ahead.” Sorry.
This is shameful and embarrassing hype…at best trend following with no value added. If the SEC regulated CNBC, as I was for my 42 years in the investment business, at best they would be sanctioned for this type of behavior.
What do you think?
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