CNBC is easily the most popular cable financial news network in the world. The exciting, entertaining and cutting edge format of the network is second to none. With Market Coverage 24 hours per day during the trading session and many well known on air personalities and commentators, and with shows like Mad Money and Fast Money CNBC is truly "Where Business Turns First".
CNBC is like a water. All Humans need water to survive, but if they are thrown into a pool of water and can't swim then they will drown. Investors and Traders need to know what is going on. CNBC is a great place for such information. CNBC is a never ending flow of information, opinions and commentary. If we actually followed the recommendations of the people on CNBC we are always going to be late to the party, on the other side of the trade with someone else who knows more than us, and having too many diluted low quality ideas. How can anyone make sense of all this information?
Many Investor types end up buying stock in the so called "Leading Companies" after hearing about them some how from some one on CNBC. If the Stock price declines, they hold because their investment is in a "Solid Company" with great Assets, Products, ect. This makes the Investor feel comfortable, well informed and savvy.
The purpose of CNBC for public companies is to promote their stock, and tell the investing community their story.
The Good News: These Public Relations campaigns can turn people on to some great investments they would other wise not know about.
The Bad News: These are Public Relations campaigns. They are designed to highlight the "Good" in the businesses. The Annual Report is for the Risk Disclosures and all of the not so fun things to talk about.
CNBC makes Traders and Investors into Celebrities. They glamorize the life style of Trading, Wall Street and Money Management. CNBC simply provides Entertainment in the form of Financial Information. Many people think this is what it's all about. The good life is what they want, so CNBC is what they focus on. CNBC becomes their primary source of strategies and information.
The primary focus of Traders should be Risk Management and Money Management, not CNBC. Shows on CNBC such as Mad Money and Fast Money occupy parking space in the minds of helpless Traders.
1 comment:
I like what you got to talk about Ray, alot of people all they know of the financial world is CNBC, and I have to explain to them that what they do isnt any different than any other station, other than the sometimes good news they deliver. Its ok to watch and listen if you know what to take out of it....keep up the good work friend
Daizon
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