Why does the media constantly barrage us with stock market "fear mongering"

10 posts / 0 new
Last post
braddavery's picture
braddavery
Status: Member (Offline)
Joined: Aug 17 2010
Posts: 7
Why does the media constantly barrage us with stock market "fear mongering"

http://money.cnn.com/2010/11/23/markets/markets_newyork/index.htm

This was "breaking news" on CNN's site and it's ALWAYS breaking news on news sites every time someone stubs their toe. Is it really necessary to inform the public that the "market dropped" every single time someone blows their nose? Things happen, the market drops. I mean, we get it... don't we? What could this be other than blatant fear mongering? What useful purpose does it serve to publically inform society that the market dropped again and again and again and again.

I mean, when I saw that stocks were dumped making the market drop because North Korea shot at South Korea, the first thing that popped into my head was "Who gives a shit."

Your thoughts? Does this news scare you like it is clearly intended to?

Travlin's picture
Travlin
Status: Diamond Member (Offline)
Joined: Apr 15 2010
Posts: 1322
Re: Why does the media constantly barrage us with stock ...

Braddavery

In past times I could happily ignore market jitters.  But now it is all such a house of cards that a little snowball rolling our way could quickly become an avalanche.  The point is that we’d better get our ducks in a row ahead of time, and if fear of the markets motivates people then so much the better.  There is good reason to be nervous.

Travlin 

Dogs_In_A_Pile's picture
Dogs_In_A_Pile
Status: Martenson Brigade Member (Offline)
Joined: Jan 4 2009
Posts: 2606
Re: Why does the media constantly barrage us with stock ...

Brad -

Given that CNN, Fox, MSNBC, CNBC are noise generators (admittedly there are nuggets of info to be found on rare occasion and never as a part of the "Breaking New" story) why even get caught up in who is telling you what the market is doing?

I can hear the groans from long time posters/readers (yup, here it comes), but the single most effective approach to trading (not investing) in the market is to be market neutral and trade in the direction the market is moving.  Don't look for the first best nickel and don't stick around trying to wring out the last, best dime.  Take a chunk of a move and get out - take what the market gives and move on. 

Trading stock for $1-2 moves over a day or two has been a very profitable debt elimination strategy over the past 18 months. 

You never really expected the glossy-lipped bimbos on Fox or CNN to be able to do much more than read copy anyway did you?

SteveW's picture
SteveW
Status: Gold Member (Offline)
Joined: Jan 21 2010
Posts: 490
Re: Why does the media constantly barrage us with stock ...

In other news today gold gained $10.

SagerXX's picture
SagerXX
Status: Diamond Member (Offline)
Joined: Feb 11 2009
Posts: 2237
Re: Why does the media constantly barrage us with stock ...

Yep.  Despite the dollar going up.

sosMsos's picture
sosMsos
Status: Bronze Member (Offline)
Joined: Nov 18 2010
Posts: 42
Re: Why does the media constantly barrage us with stock ...

Best trading approach is not listening to the news. there is a reason why 95% of daytraders loose, and nearly 70% of swing traders.

Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
Re: Why does the media constantly barrage us with stock ...

Hi Braddavery!

Welcome to CM.

Yep. Everytime the market goes up or down the MSM picks out one single event that supposedly caused it. Kinda weird that one event would cause a very complex thing like the market to go one way or the other isn't it?

Human beings are inherently uncomfortable with "not knowing". We have to have some 'reason' why something happened. In the end its all about fear.

Fear is THE best human motivator. It keeps people in line.

 

dshields's picture
dshields
Status: Platinum Member (Offline)
Joined: Oct 24 2009
Posts: 599
Re: Why does the media constantly barrage us with stock ...

All week long I am subjected to Bloomberg and/or CNBC.  They are actually on TVs hung on the walls at work.  I also read stuff here and at Zero Hedge and EndTheIllusion and others.  In the meantime I get world event news from FOX, Google, CNN, and others.  It is a barrage of information.  There are a lot of things going on here in the US and all over the world.  I find it very difficult to absorb it all and somehow fit it all together to come up with what is going to happen.  I am an optimistic type of person and I try to see good things out there.  Over the last few years I see less and less good.  Let's take a few - you could write a book about any one of them - 

1) Many of the the Moslems of the world are very unhappy and sometimes violent.  This is costing the world really large amounts of money in many different ways - people here know all about this.

2) There is a world wide financial crisis - people here know all about this one.

3) There is oil and what will surely be an ever increasing demand for a limited resource.  Energy prices are going up and will continue to go up.  This is going to have major impact on the world - people here know all about this one also.

4) Here at home in America we are literally falling apart from the inside out.  The class of dependency is rapidly expanding.  The middle class has been hollowed out.  Our education system is not teaching the right stuff.  We have deviated from the constitution to a remarkable degree and so on.  People here do not focus enough on these issues now but they will in the future as these issues are going to have great impact on their personal lives.

5) All of the above issues and many others interact in complex ways.

When you add it all up, the future does indeed look bleak.  Many years ago people thought it would be nuclear war that would have the largest negative impact on human civilization.  I am starting to believe is it going to be money.  When I take any one of the above issues and ponder it I find it difficult to determine what, and more importantly when, the given issue is going to come to a point where the nature of the issue will go over a knee in some curve and result in rapid dramatic change.  When I combine them all together and try to sort that out I just want to drink.  At this point I am trying to figure out which one is going to get to me first, what I need to do about it, and where the nearest liquor store is.  Nothing good is going to come from any of it.  Tonight my thinking is going along the lines of revolution.  I think there is going to be violence.  So, while I am looking for a liquor store I am also going to be stock piling food and looking for sporting goods stores which stock guns, ammo, and reloading equipment.

 

Dogs_In_A_Pile's picture
Dogs_In_A_Pile
Status: Martenson Brigade Member (Offline)
Joined: Jan 4 2009
Posts: 2606
Re: Why does the media constantly barrage us with stock ...
dshields wrote:

When you add it all up, the future does indeed look bleak.  Many years ago people thought it would be nuclear war that would have the largest negative impact on human civilization.  I am starting to believe is it going to be money.  When I take any one of the above issues and ponder it I find it difficult to determine what, and more importantly when, the given issue is going to come to a point where the nature of the issue will go over a knee in some curve and result in rapid dramatic change.  When I combine them all together and try to sort that out I just want to drink.  At this point I am trying to figure out which one is going to get to me first, what I need to do about it, and where the nearest liquor store is.  Nothing good is going to come from any of it.  Tonight my thinking is going along the lines of revolution.  I think there is going to be violence.  So, while I am looking for a liquor store I am also going to be stock piling food and looking for sporting goods stores which stock guns, ammo, and reloading equipment.

ds -

Please don't take this the wrong way, you have hung a lot of really good, thought provoking posts up over the past couple of weeks.

But reading this one (my emphasis in bold italics).........I have to ask, what have you been doing for the past 13 months? 

dshields's picture
dshields
Status: Platinum Member (Offline)
Joined: Oct 24 2009
Posts: 599
Re: Why does the media constantly barrage us with stock ...
Dogs_In_A_Pile wrote:
dshields wrote:

When you add it all up, the future does indeed look bleak.  Many years ago people thought it would be nuclear war that would have the largest negative impact on human civilization.  I am starting to believe is it going to be money.  When I take any one of the above issues and ponder it I find it difficult to determine what, and more importantly when, the given issue is going to come to a point where the nature of the issue will go over a knee in some curve and result in rapid dramatic change.  When I combine them all together and try to sort that out I just want to drink.  At this point I am trying to figure out which one is going to get to me first, what I need to do about it, and where the nearest liquor store is.  Nothing good is going to come from any of it.  Tonight my thinking is going along the lines of revolution.  I think there is going to be violence.  So, while I am looking for a liquor store I am also going to be stock piling food and looking for sporting goods stores which stock guns, ammo, and reloading equipment.

ds -

Please don't take this the wrong way, you have hung a lot of really good, thought provoking posts up over the past couple of weeks.

But reading this one (my emphasis in bold italics).........I have to ask, what have you been doing for the past 13 months? 

Dogs - LOL - For the last 13 months I have been reading an aircraft carrier of stuff and trying to figure out how much of it is crap and how much is real.  some of it is crap but a lot of it is real.  Sometimes it just weighs me down...

 

 

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments