The Media is there to drive you crazy

The Media is there to drive you crazy

Sometimes when I listen to the financial media, I get the impression of a weather vane spinning wildly in one direction and then the other, mindlessly reporting on the random events of the day. They have found a way to offer an explanation for everything even when there is no logical reason for something happening. It’s like the investor at home has become an info junkie and needs his information fix so he can feel normal again. It’s really more like business entertainment news complete with splashy banners and neon lights. And it all means nothing to the long term investor. But if you watch or listen to it it’s hard not to let it affect you. When was the last time you heard someone say, ’I don’t know’ on CNBC or BNN or give a balanced well thought out reply. Everyone who is being interviewed always has an explanation for why something is happening. What the business media offer you isn’t really information (which the market would discount anyway) but nothing more than noise. We live in an era of information overload where the end product offers nothing more but diminishing returns. And what you hear is what everyone else is hearing so of what value can it possibly be.

And of course predictions abound on the media outlets as that is what the viewing audience wants and craves and if you let yourself listen to them you may find yourself getting caught up in the madness of it all and may well be tempted to do something you later wish you hadn’t have done. It often introduces doubt into your mind about a certain holding or maybe all of your holdings and suddenly before you know it your lost and out to sea. Okay maybe I’m exaggerating a bit but you get the idea. Try to keep in mind that nobody really knows what is going to happen and if they did know they certainly wouldn’t be pronouncing it to the world. They would keep to themselves so they could profit by it.

Like barkers at the circus the media strive to get your attention with what will turn out to be yesterday's headlines. In spite of of their dire warning of bad news rest assured the sun will still rise in the morning and it will be another day.

I’m as guilty as anyone else in listening to the business entertainment news because I love the markets, but I often reach a point when I need to turn it off for no other reason but for self preservation and to keep my sanity