basehitz

Cramer's Mad Money - We Have Nothing to Fear but Missing the Next Rally (3/30/09)

CNBC provides enough misinformation without this constant re-reporting what these trader mouthpieces air. A little history:

Early 2000: Irresponsible cheerleading, almost giddy reporting of daily new Nasdaq highs. Instead of responsibly warning of unsustainable valuations, the cheerleading was constant. Remember "Price/page hits" in lieu of P/E or P/S cause most had no "E", and some had no "S". No problem for bubbleTV.

2002 late summer: 3 years of pounding, the market near a bottom, and now . . . FINALLY. . . the adults get some air time warning of the deep-rooted problems. Backwards again.

2007 and well into 2008: Relentless cheerleading is again in vogue. Larry Kudlow, Dennis Kneale, Erin Burnett, to name just a few of the chronic cheerleaders.

Oct 2008: AFTER the damage, now CNBC airs those predicting the worst. AFTER the damage.

And you can further break down the above into countertrend moves within a primary trend. Basically, whenever the cheerleaders are in full pom pom mode, watch out. Whenever they are crying in their beer, have your BUY watching list ready. If you follow them, you are more than likely backwards.

So why does CNBC chronically get in back-asswards? 2 possible theories:
1) Ratings, and by extension advertising revenue. I have repeatedly read from other sources that CNBC ratings go higher during market volatility, whether rally or selloff. So, if CNBC can cheerlead overbought markets higher, or scare investors during a selloff, either way they get higher ratings. (And either way their viewers lose money if they follow the advise.)

2) CNBC is a shill for the traders, who know all this "advise" is back-asswards but use CNBC to mislead their viewers cause they want your money. And CNBC needs something to put on cause their “experts” are mostly actors.

So, since we know historically CNBC is more apt to give misinformation than good advise (and this is not disputable), why does anybody watch? As the above 10 years shows, they do. As for why, ask Dr Phil. I have virtually discontinued watching all CNBC programming. They are just too wrong too many times.