Are CNBC all day traders?

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thelateinvestor43
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Are CNBC all day traders?

Post by thelateinvestor43 » Tue Mar 03, 2020 5:59 am

I have been listening to Brian Sullivan show and all these guys talk about is what stocks to buy, when to get in, when to get out (market timing?) when to puts, etc, etc. It's getting a little sickening. Is this why they call it "noise". Are there any indexers on CNBC or is it too boring for those guys? They all seem like jocks too. They could just as well be sitting around talking about football.

Are there any indexing shows on CNBC or it all just these noisy day traders?

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Re: Are CNBC all day traders?

Post by Grt2bOutdoors » Tue Mar 03, 2020 6:14 am

Yes, they are day traders and speculators.
Why? Because CNBC is the “in” place where if you follow and watch them you can be like them too - young, rich, athletic, successful. :greedy :oops:
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

GoldenFinch
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Re: Are CNBC all day traders?

Post by GoldenFinch » Tue Mar 03, 2020 6:15 am

Bogleheads are just a little subgroup of the market world. There are many different approaches. CNBC makes their money by keeping viewers and selling ads. They have to keep things exciting. They report market news and provide commentary. Talking about boring buy and hold indexing all day probably wouldn’t keep people watching.

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thelateinvestor43
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Re: Are CNBC all day traders?

Post by thelateinvestor43 » Tue Mar 03, 2020 6:18 am

it's kind of fun watching them , but I don't understand half of the terms they use. I noticed they're all good looking guys also. The guy with the blue eyes could be a model. I guess they want people to watch them. Then there's Cramer ...... lol! He's entertaining, but he talks so fast, sometimes I can't get half of what he's saying and he always looks so tired. Probably doesn't sleep to much, he looks high strung.

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Schlabba
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Re: Are CNBC all day traders?

Post by Schlabba » Tue Mar 03, 2020 6:37 am

Imagine a boglehead approved show. How incredibly boring would that be?

After every news item they would have to say "But you should ignore this and stay the course". After mentioning a company they would have to say "but we don't deal with individual companies just buy an index instead".

The only thing bogleheads can talk about for hours/days is howmuch % we want in international. And maybe some Total Return vs Dividends discussion once in a while.
Secretly a dividend investor. Feel free to ask why.

MarkBarb
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Re: Are CNBC all day traders?

Post by MarkBarb » Tue Mar 03, 2020 6:57 am

Schlabba wrote:
Tue Mar 03, 2020 6:37 am
Imagine a boglehead approved show. How incredibly boring would that be?

After every news item they would have to say "But you should ignore this and stay the course". After mentioning a company they would have to say "but we don't deal with individual companies just buy an index instead".

The only thing bogleheads can talk about for hours/days is howmuch % we want in international. And maybe some Total Return vs Dividends discussion once in a while.
This. You only make money as a stock show if you keep things entertaining and interesting. To do that, you have to present information as though it is actionable. A Bogleheads station would have little repeat viewing. A station that acts like there is useful new news every day draws repeat viewers.

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Re: Are CNBC all day traders?

Post by z3r0c00l » Tue Mar 03, 2020 7:01 am

No wonder so many people fall into bad investing behavior, it is on TV, other news media, Jim Cramer is consulted whenever something happens as if he doesn't have a 20 year track record of being wrong all the time, and sometimes dangerously wrong, stock picking is even often taught in elementary school math class where kids compete to gamble on the market with play money.

fortyofforty
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Re: Are CNBC all day traders?

Post by fortyofforty » Tue Mar 03, 2020 7:12 am

They are not all day traders. They are, though, all traders. Of course, in order to be a trader or speculator, you've got to be supremely confident in your own abilities. That is probably why they are mostly young, mostly male, and mostly overconfident.

Interestingly, Jim Cramer advocates for the S&P 500 index, for the initial $10,000 of an investor's portfolio. He doesn't spend his entire show talking about it, though, since that would not hold anyone's interest. I will tune in to CNBC for market news and entertainment, realizing that everyone is selling something, even if not directly.

FILR
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Re: Are CNBC all day traders?

Post by FILR » Tue Mar 03, 2020 7:14 am

They are entertainers. Index investing, buy and hold, stay the course has no entertainment value. Having money to spend on entertainment in retirement, however......

fwellimort
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Re: Are CNBC all day traders?

Post by fwellimort » Tue Mar 03, 2020 7:16 am

I don't think many of the speakers themselves are truly day traders.

For one, Jim Cramer does indeed endorse an index fund for the average investor. The only issue with the Boglehead approach is it doesn't get views.

That said, there are many approaches to investing in the stock market. A simple buy and hold has not worked in some countries so the Boglehead approach is not the de facto solution.

Having stated that, there are enough evidences that day trading generally loses to the market because day trading creates lots of inefficiencies with taxes (and because you generally buy after it goes up, and sell after it goes down).

I do believe there are a few approaches to investing in the stock market:
1. Buy and hold with the belief the market will go up over time
2. High frequency trading and outperforming through arbitrage or patterns
3. Buy and hold individual sound companies at fair value and only sell if one no longer agrees with the company's approach
4. Hedging through options (not for maximizing returns so long term, I do see this as an underperforming method)
5. Illegal (insider info) or figure out an event before it becomes public like the 'Big Short' and capitalize on such

CNBC is more fo entertainment (to get views) than an actual channel to get the necessary information for investing (not always but most of the time).

Many of the casters in CNBC probably do have a significant if not all of their actual savings in index funds (as with also many active fund managers, etc). It's just a dirty little secret in the investing world. Fortunately, people are becoming more aware about indexing although it still seems many want to 'get rich quick' or don't truly understand what indexing is.

ARoseByAnyOtherName
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Re: Are CNBC all day traders?

Post by ARoseByAnyOtherName » Tue Mar 03, 2020 7:22 am

Schlabba wrote:
Tue Mar 03, 2020 6:37 am
Imagine a boglehead approved show. How incredibly boring would that be?

After every news item they would have to say "But you should ignore this and stay the course". After mentioning a company they would have to say "but we don't deal with individual companies just buy an index instead".

The only thing bogleheads can talk about for hours/days is howmuch % we want in international. And maybe some Total Return vs Dividends discussion once in a while.
That would be an inspired bit of performance art. Someone should do it!

veggivet
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Re: Are CNBC all day traders?

Post by veggivet » Tue Mar 03, 2020 7:30 am

I'm not sure I would classify them all as day traders. They are certainly active traders, especially the options guys, but panelists like Josh Brown and others advocate for having a diversified portfolio and not reacting to every market move. In all fairness, they do review their trades on occasion, and of course they highlight the successful ones, but they don't completely avoid mentioning the losers as well.
If you watch your pennies, your dollars will take care of themselves.

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Re: Are CNBC all day traders?

Post by bondsr4me » Tue Mar 03, 2020 7:42 am

veggivet wrote:
Tue Mar 03, 2020 7:30 am
I'm not sure I would classify them all as day traders. They are certainly active traders, especially the options guys, but panelists like Josh Brown and others advocate for having a diversified portfolio and not reacting to every market move. In all fairness, they do review their trades on occasion, and of course they highlight the successful ones, but they don't completely avoid mentioning the losers as well.
+1

I do believe Josh Brown seems to be more of an "investor" and not a "trader".
Some of the other panelists also seem to be "investors", while others like the Najarians' I feel are "traders".

CNBC is not all bad. It seems to me they recently had Vanguard's Chief Global economist Joe Davis on the show.

You just have to filter out the "noise".
It does have some quality content about the economy, the markets and many companies, and investing.
As the saying goes: "viewer discretion is advised".

Have a great day.

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hagridshut
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Re: Are CNBC all day traders?

Post by hagridshut » Tue Mar 03, 2020 7:53 am

Most people should turn off CNBC.

At best, CNBC is infotainment trash. At worst, it incites people to make emotional trades based on sensationalized commentary that may or may not have any basis in reality.

Don't give these guys clicks or views. They just don't deserve your attention.
First Principles: (1) Diversify (2) Low Cost (3) Stay the Course | 3-Fund Index Portfolio

veggivet
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Re: Are CNBC all day traders?

Post by veggivet » Tue Mar 03, 2020 7:53 am

Yes, the Najarians are definitely in and out of the market quickly. Those are the options guys I was referring to. I'll mention one other analyst that I follow, and that is Carter Braxton Worth (can you think of a better name for a Wall St. guy?). He appears occasionally on the show Fast Money, and is a technician. I've been keeping track of his calls on specific stocks for several months, and the guy has an impressive track record, and is not shy about coming clean when he's blown a call. Having said that, I don't act on his advice.
If you watch your pennies, your dollars will take care of themselves.

M.Lee
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Re: Are CNBC all day traders?

Post by M.Lee » Tue Mar 03, 2020 7:55 am

I only watch it in the morning, so I don't see all these young people. While I can't say for certain, I don't believe they are day traders (maybe weekly traders :D ). But seriously they are imo traders as opposed to investors. I don't see anything wrong with that. CNBC and FOX Business interview a lot of interesting people. Investment Managers, Company CEO's etc. I think we can learn a lot from them. But Cramer grates on me a bit.

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Re: Are CNBC all day traders?

Post by OldBallCoach » Tue Mar 03, 2020 8:04 am

We need to remember one thing...CNBC is in the entertainment business....so is WWE...I have as much faith in one as I do the other. One of my students who is a finace major bought the Cramer plan and followed it for a year..his comment to me was I hope his guy makes some money from the network cause his plan is a joke...his words not mine...but I think at least here we all know the Boglehead plan will win the championship in the long run. Best advise I have heard about the virus deal is this...turn off the tv and media and dont touch anything...your investments, your tv dial and always just watch the ESPN channel,,,,if somethings really bad they will tell you...until then..well not my bad but if they enjoy it...go for it.

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thelateinvestor43
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Re: Are CNBC all day traders?

Post by thelateinvestor43 » Tue Mar 03, 2020 8:04 am

I do like this guy Jeremy Siegel and what he said a week ago about the current situation. He basically says buy and hold and don't worry.
https://www.youtube.com/watch?v=E1FXhlUzfZ0

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Re: Are CNBC all day traders?

Post by Sandtrap » Tue Mar 03, 2020 8:52 am

OldBallCoach wrote:
Tue Mar 03, 2020 8:04 am
We need to remember one thing...CNBCMedia Outlets are is in the entertainment business....so is WWE...I have as much faith in one as I do the other. One of my students who is a finace major bought the Cramer plan and followed it for a year..his comment to me was I hope his guy makes some money from the network cause his plan is a joke...his words not mine...but I think at least here we all know the Boglehead plan will win the championship in the long run. Best advise I have heard about the virus deal is this...turn off the tv and media and dont touch anything...your investments, your tv dial and always just watch the ESPN channel,,,,if somethings really bad they will tell you...until then..well not my bad but if they enjoy it...go for it.
+1
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Re: Are CNBC all day traders?

Post by Rowan Oak » Tue Mar 03, 2020 8:56 am

bondsr4me wrote:
Tue Mar 03, 2020 7:42 am
veggivet wrote:
Tue Mar 03, 2020 7:30 am
I'm not sure I would classify them all as day traders. They are certainly active traders, especially the options guys, but panelists like Josh Brown and others advocate for having a diversified portfolio and not reacting to every market move. In all fairness, they do review their trades on occasion, and of course they highlight the successful ones, but they don't completely avoid mentioning the losers as well.
+1

I do believe Josh Brown seems to be more of an "investor" and not a "trader".
Some of the other panelists also seem to be "investors", while others like the Najarians' I feel are "traders".

CNBC is not all bad. It seems to me they recently had Vanguard's Chief Global economist Joe Davis on the show.

You just have to filter out the "noise".
It does have some quality content about the economy, the markets and many companies, and investing.
As the saying goes: "viewer discretion is advised".

Have a great day.
A few things Josh Brown has said about the financial media (that he is a part of) over the years:
A reporter working on a story about financial media asked me to contribute five tips for a sidebar on how consumers can be savvier in their, well, consumption.

Here’s what I came up with:

1. Remember that everyone has a bias or agenda. Everyone (me too! and you!).

2. Don’t confuse someone else’s time frame for your own.

3. Know that 95% of what you read is contextual information, not actionable (which is perfectly fine).

4. Ignore all forecasts and price targets, except for entertainment purposes.

5. Hierarchy: Books > Articles > Blogs > Tweets

Five Tips for Savvier Consumption of Financial Media
The financial media is irrationally addicted to trading stories because they have urgency and they’re entertaining, even if ultimately unsatisfying to the 90 million Americans who are trying to figure out what to do with their wealth. There is a relentless focus on analyst research calls, upgrades and downgrades, economic data releases, merger and acquisition buzz, hedge fund activity etc. This is all highly interesting and I personally enjoy both consuming and creating this type of content as well. But it should not be the only thing on the web / airwaves. It is disproportionately dominant when compared to its actual utility for the majority of the audience. There is a huge content arbitrage opportunity here.

This is very much a junk food versus eating your veggies conundrum and we know who usually wins these tug-o-wars in real life. It’s not that people don’t need to know the macro news or the state of the markets each day – it’s that this stuff is really only relevant to them as it affects their portfolios and, by extension, their lives. Financial content and journalists can and should do more to connect the two in their reporting.

Financial Media Wakeup Call: The Big Disconnect
Can the financial media give investment advice?

No.

Can the financial media give investment advice?
There are two things that are never discussed on the radio, TV or on the websites of the mainstream financial media outlets. It’s ironic because they are two of the most important things for investors to understand:

1. Time Frames

2. Position Sizing

I don’t mean that these two concepts are rarely discussed – I mean they are never ever discussed at all.

The media focuses on the following instead:

1. Investment Ideas

2. Directional Calls

3. Breaking News

Those three elements are formulaically proven to gain and hold the audience’s attention and they’re important too, nothing wrong with that.

Two Things That Are Never Discussed in the Financial Media
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger

RubyTuesday
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Re: Are CNBC all day traders?

Post by RubyTuesday » Tue Mar 03, 2020 9:00 am

thelateinvestor43 wrote:
Tue Mar 03, 2020 5:59 am
I have been listening to Brian Sullivan show and all these guys talk about is what stocks to buy, when to get in, when to get out (market timing?) when to puts, etc, etc. It's getting a little sickening. Is this why they call it "noise". Are there any indexers on CNBC or is it too boring for those guys? They all seem like jocks too. They could just as well be sitting around talking about football.

Are there any indexing shows on CNBC or it all just these noisy day traders?
I cannot think of a worse channel for thelateinvestor43 to watch than CNBC. When myself and others have suggested you stay away from “financial porn”, this was exactly what we were referring to...

Good luck.
“Doing nothing is better than being busy doing nothing.” – Lao Tzu

anil686
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Re: Are CNBC all day traders?

Post by anil686 » Tue Mar 03, 2020 9:02 am

I know Becky Quick on CNBC only invests in the SP500. She disclosed that about two-three years ago during a WB interview after the annual meeting. They were discussing the SP500 and Warren asked if she was pleased with her investment and she said that she was and that is all she had bought since their first interview in the mid 2000s...

However, you will never catch her promoting the SP500 - in fact the morning hosts are all quizzing the guests on the direction of the market, bond markets, etc. That is because their main advertisers (obviously) make money on transactions and want you to do something. Or they are actively managed funds trying to get you to invest with them at a higher fee rate...

I feel that many of the financial media personalities actually invest like Bogleheads but are worried about retribution from the parent company (due to advertisers) and so are “closet indexers” - not to be confused with the actively managed funds who mirror the index at a substantially higher cost. JMO though...

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JoMoney
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Re: Are CNBC all day traders?

Post by JoMoney » Tue Mar 03, 2020 9:09 am

Lots of guests on CNBC, including Jim Cramer, will periodically advise passive indexing.
Mr. Bogle was a periodic guest on all the business news networks. When people ask Warren Buffett's advice, he advocates that most people should be passively indexing in a low cost fund.
Even among us passive investors, many of us enjoy the business/finance news and the entertainment value of Cramer's show.
If watching it influences you into some bad decisions, better to cut it out, and maybe bad on those of us who further its promotion allowing it to impact our passive brothers poorly.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

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Re: Are CNBC all day traders?

Post by veggivet » Tue Mar 03, 2020 9:12 am

One thing I've noticed in the last few months, since most brokerages went commission-free for stocks, ETFs and mutual funds, is that recommendations for options has increased. The old 'Risk less, make more' mantra. I'm sure it has nothing to do with the fact that all brokerages still charge for options trades.
If you watch your pennies, your dollars will take care of themselves.

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Re: Are CNBC all day traders?

Post by Rowan Oak » Tue Mar 03, 2020 9:26 am

JoMoney wrote:
Tue Mar 03, 2020 9:09 am
Even among us passive investors, many of us enjoy the business/finance news and the entertainment value of Cramer's show.
If watching it influences you into some bad decisions, better to cut it out, and maybe bad on those of us who further its promotion allowing it to impact our passive brothers poorly.
Over the years I have found it a bit calming to watch the financial media freak out and panic. Once you know their biases and conflicts of interest it's like watching staged theater. Knowing everything they say/predict is a coin flip at best.
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger

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JoMoney
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Re: Are CNBC all day traders?

Post by JoMoney » Tue Mar 03, 2020 9:28 am

veggivet wrote:
Tue Mar 03, 2020 9:12 am
...the fact that all brokerages still charge for options trades.
Some of them don't. There's still a small per-contract fee, but the brokerage commission is gone
https://www.fidelity.com/trading/commis ... rgin-rates
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

Geoman
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Re: Are CNBC all day traders?

Post by Geoman » Tue Mar 03, 2020 9:30 am

At least at night, bloomberg seems to focus on the macro side of things rather than individual stocks. If I am going to watch something for about 30 minutes it would be bloomberg, they do tend to repeat alot of their coverage though.

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Re: Are CNBC all day traders?

Post by unclescrooge » Tue Mar 03, 2020 9:31 am

thelateinvestor43 wrote:
Tue Mar 03, 2020 5:59 am
I have been listening to Brian Sullivan show and all these guys talk about is what stocks to buy, when to get in, when to get out (market timing?) when to puts, etc, etc. It's getting a little sickening. Is this why they call it "noise". Are there any indexers on CNBC or is it too boring for those guys? They all seem like jocks too. They could just as well be sitting around talking about football.

Are there any indexing shows on CNBC or it all just these noisy day traders?
CNBC exists only to sell advertising. In order to do so, they must keep the audience engaged, which they do so by keeping them entertained, or outraged.

I remember seeing a static about the shock jock, Howard Stern. People who liked him listened for an hour, but those who hated him listened for 2 hours.

DB2
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Re: Are CNBC all day traders?

Post by DB2 » Tue Mar 03, 2020 9:33 am

Who knows. Most of them could be indexers. This is TV after all.

truenorth418
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Re: Are CNBC all day traders?

Post by truenorth418 » Tue Mar 03, 2020 9:35 am

If these CNBC types were as savvy about stock picking they would all be gazillionaires and would not have to work for CNBC in the first place.

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Re: Are CNBC all day traders?

Post by MotoTrojan » Tue Mar 03, 2020 9:35 am

A show that just said "buy & hold" over and over would be awfully boring to me at-least.

Johnnyone
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Re: Are CNBC all day traders?

Post by Johnnyone » Tue Mar 03, 2020 9:41 am

If you want to watch a show that’s less entertaining and free you could always try Bloomberg.

DB2
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Re: Are CNBC all day traders?

Post by DB2 » Tue Mar 03, 2020 9:51 am

I recall one of the interviews Bogle did with Motley Fool (see on YouTube). But the interviewer discussed how so many advisers selling products actually are indexers; but they sell clients more expensive funds since they can make money that way. I think it's possibly analogous to what's going on here. CNBC is practically owned by financial firms so "buying and selling stocks" has to be the theme of the network. I've noticed CNBC has been pimping bitcoin more lately too.

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Re: Are CNBC all day traders?

Post by veggivet » Tue Mar 03, 2020 9:53 am

JoMoney wrote:
Tue Mar 03, 2020 9:28 am
veggivet wrote:
Tue Mar 03, 2020 9:12 am
...the fact that all brokerages still charge for options trades.
Some of them don't. There's still a small per-contract fee, but the brokerage commission is gone
https://www.fidelity.com/trading/commis ... rgin-rates
Thanks for the correction. I should have been more specific in my statement. My intent was to say that options trading isn't free, but 65 cents per contract is pretty close.
If you watch your pennies, your dollars will take care of themselves.

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Re: Are CNBC all day traders?

Post by DB2 » Tue Mar 03, 2020 9:53 am

Johnnyone wrote:
Tue Mar 03, 2020 9:41 am
If you want to watch a show that’s less entertaining and free you could always try Bloomberg.
Bloomberg definitely offers something more of value.

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Re: Are CNBC all day traders?

Post by Rowan Oak » Tue Mar 03, 2020 10:21 am

truenorth418 wrote:
Tue Mar 03, 2020 9:35 am
If these CNBC types were as savvy about stock picking they would all be gazillionaires and would not have to work for CNBC in the first place.
This is true for so many "experts" and soothsayers in financial media and elsewhere.

TV/broadcast companies take money from advertisers who pay for eyeballs. Nothing gets views like scaring the hell out of people so that's what they do.

All these subscription services: newsletters, motley fool, investor's business daily, Jim Cramer action alerts plus, etc. etc. it's all the same thing. They know nothing, but they will gladly take your money and tell you that they do.

Ask yourself: How could it be that they have this power of prognostication, but still need my $20 (or whatever amount) per month to keep it going?
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger

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Re: Are CNBC all day traders?

Post by fortyofforty » Tue Mar 03, 2020 3:43 pm

Geoman wrote:
Tue Mar 03, 2020 9:30 am
At least at night, bloomberg seems to focus on the macro side of things rather than individual stocks. If I am going to watch something for about 30 minutes it would be bloomberg, they do tend to repeat alot of their coverage though.
And Bloomberg himself has admitted his coverage of China is biased, so that the company is allowed to remain and report in China. I don't trust his coverage, either.

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Re: Are CNBC all day traders?

Post by fittan » Tue Mar 03, 2020 3:54 pm

Schlabba wrote:
Tue Mar 03, 2020 6:37 am
Imagine a boglehead approved show. How incredibly boring would that be?

After every news item they would have to say "But you should ignore this and stay the course". After mentioning a company they would have to say "but we don't deal with individual companies just buy an index instead".

The only thing bogleheads can talk about for hours/days is howmuch % we want in international. And maybe some Total Return vs Dividends discussion once in a while.
....and which index fund has the lowest fee.

rascott
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Re: Are CNBC all day traders?

Post by rascott » Tue Mar 03, 2020 4:54 pm

Most of the people they have on tend to be active fund managers, not necessarily day traders.

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Re: Are CNBC all day traders?

Post by Fallible » Tue Mar 03, 2020 5:02 pm

Here's a detailed 2011 Forbes article on CNBC, including target audience:

https://www.forbes.com/sites/ilanagreen ... ay-on-top/
Target Customers

CNBC has two primary types of customers—its Viewership audience (that has a critically important subset, detailed below) and its potential Sponsorship audiences. Both have high, but varying sets of expectations around CNBC content and services, as follows: • The Casual Investor/Viewer; Customer comprises the majority of the 390 million viewers around the world and has an attractive CPM based on their high net worth and executive financial profiles. These customers tend to watch CNBC only intermittently via traditional terrestrial based cable lines or the Internet (via dial up, broadband or WIFI connections) and mostly for entertainment purposes .Whereas The ‘Professional Investor/Viewer’ Customer,whether a day or institutional trader, however, relies heavily upon and trusts CNBC to deliver decision useful data that they will incorporate into their daily investment decisions....
The first principle is that you must not fool yourself – and you are the easiest person to fool. ~Richard Feynman

Ferdinand2014
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Joined: Mon Dec 17, 2018 6:49 pm

Re: Are CNBC all day traders?

Post by Ferdinand2014 » Tue Mar 03, 2020 7:07 pm

thelateinvestor43 wrote:
Tue Mar 03, 2020 8:04 am
I do like this guy Jeremy Siegel and what he said a week ago about the current situation. He basically says buy and hold and don't worry.
https://www.youtube.com/watch?v=E1FXhlUzfZ0
He has a classic everything you ever wanted to know about stocks book:

https://www.amazon.com/Stocks-Long-Run- ... 186&sr=8-2
“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett

MotoTrojan
Posts: 9953
Joined: Wed Feb 01, 2017 8:39 pm

Re: Are CNBC all day traders?

Post by MotoTrojan » Tue Mar 03, 2020 7:09 pm

DB2 wrote:
Tue Mar 03, 2020 9:51 am
I recall one of the interviews Bogle did with Motley Fool (see on YouTube). But the interviewer discussed how so many advisers selling products actually are indexers; but they sell clients more expensive funds since they can make money that way. I think it's possibly analogous to what's going on here. CNBC is practically owned by financial firms so "buying and selling stocks" has to be the theme of the network. I've noticed CNBC has been pimping bitcoin more lately too.
A lot of those advisors also construct portfolios for their clients that use many funds to give a perceived complexity, but often track the broad/indexes market closely to reduce tracking error regret. Even Vanguard’s PAS is guilty of this, albeit with much lower expenses.

fortyofforty
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Re: Are CNBC all day traders?

Post by fortyofforty » Tue Mar 03, 2020 7:53 pm

I may be wrong, but isn't there a potential issue if an adviser is buying or selling investments while at the same time panning or praising those same securities? I thought that was one major reason why many talking heads invested personal funds in index vehicles, so as to avoid the charge of conflicts of interest. Cramer always has to mention that certain stocks he mentions are owned by his charitable trust, for example.

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arcticpineapplecorp.
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Re: Are CNBC all day traders?

Post by arcticpineapplecorp. » Tue Mar 03, 2020 8:09 pm

that's why some have referred to this as "financial porn", a term which was originally coined by Jane Bryant Quinn:

https://www.google.com/search?client=fi ... al+porn%22
"May you live as long as you want and never want as long as you live" -- Irish Blessing | "Invest we must" -- Jack Bogle

Hoongajji
Posts: 24
Joined: Sun Feb 23, 2020 7:15 pm

Re: Are CNBC all day traders?

Post by Hoongajji » Tue Mar 03, 2020 8:17 pm

The greatest brainwashing factory ever devised is the public education system.

CNBC? People getting rich directing you to buy shares of Apple. Reporting 24/7 about a potential illness that has caused an enormous panic...

I have not seen one sick person or dead person since this epidemic started. Absolute zero concern or worry.

We are having a conversation here...is television news actually news? Or widespread gossip? Or, further brainwashing? I don’t know...who the hell am I?

The internet has a great self directed intelligent information stream, like this forum with conversations about investing for self reliance now and in the future.

CNBC has an internet dominated google search results for the virus as well as NYPost.

If it wasn’t for the great bogleheads forum this virus news would have been unknown to me until today. Hoongajji found a virus update posted at the employer bulletin board.

Your financial future can be enriched by capitalizing on speculative gossip and conjectures like mass media induced hysteria. I trust my gut and long term logical stay the course strategy.

Think for yourself. The greatest riches available will be found there.

Hoongajji






I

ZMonet
Posts: 31
Joined: Sun Dec 15, 2019 2:43 pm

Re: Are CNBC all day traders?

Post by ZMonet » Tue Mar 03, 2020 8:24 pm

Looks like CNBC has a policy that staff can't own individual stocks. Makes sense.

https://www.wsj.com/articles/SB107396146359990100

"Under the new policy, senior management, newsroom staff, on-air talent and their spouses and dependents will be prohibited from owning individual stocks and bonds and have until January 2005 to liquidate their holdings. "

As others have said, CNBC is infotainment at best. I find Bloomberg much more interesting and less about hyping particular stocks

alex_686
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Re: Are CNBC all day traders?

Post by alex_686 » Tue Mar 03, 2020 8:29 pm

ZMonet wrote:
Tue Mar 03, 2020 8:24 pm
Looks like CNBC has a policy that staff can't own individual stocks. Makes sense.

https://www.wsj.com/articles/SB107396146359990100

"Under the new policy, senior management, newsroom staff, on-air talent and their spouses and dependents will be prohibited from owning individual stocks and bonds and have until January 2005 to liquidate their holdings. "

As others have said, CNBC is infotainment at best. I find Bloomberg much more interesting and less about hyping particular stocks
Note - this us basically the same policy that portfolio managers and stock analysis gave to follow. They possess non-public material information - their own opinions.
Former brokerage operations & mutual fund accountant. I hate risk, which is why I study and embrace it.

OpenMinded1
Posts: 127
Joined: Wed Feb 05, 2020 9:27 am

Re: Are CNBC all day traders?

Post by OpenMinded1 » Tue Mar 03, 2020 9:24 pm

I don't watch CNBC very often, but vaguely remember one of the regular segments - I think it might have been Fast Money Halftime Report - having a competition to see which of the stock traders on the show had the best performance over the course of a year. Most didn't do very well at all. I don't think they have that competition anymore. I've also noticed on Fast Money Halftime Report that they seem to be in a competition to see who can call the host of the the show "Judge" the most times. :D
Last edited by OpenMinded1 on Tue Mar 03, 2020 10:27 pm, edited 1 time in total.

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Bluce
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Location: Finger Lakes, NYS

Re: Are CNBC all day traders?

Post by Bluce » Tue Mar 03, 2020 9:45 pm

Schlabba wrote:
Tue Mar 03, 2020 6:37 am
Imagine a boglehead approved show. How incredibly boring would that be?

After every news item they would have to say "But you should ignore this and stay the course". After mentioning a company they would have to say "but we don't deal with individual companies just buy an index instead".

The only thing bogleheads can talk about for hours/days is howmuch % we want in international. And maybe some Total Return vs Dividends discussion once in a while.
I've never watched any of this investment porn and don't even know any of the players (too cheap to have cable) except I know who Cramer is from a few odd Youtube clips.

But I can see it now:

Stud: "So Mr. Bluce, the market dropped 11% last week -- how did you handle it?"

Old Bluce: "Which market?" :confused

Stud: "The STOCK market!" :oops:

OB: "Oh, okay, I follow the bond market more than stocks, but now that you mention it I did hear something about stocks going down." :?

Stud: "So what did you do about your stock exposure? Sell everything? Buy after it went down?"

OB: "Um no, didn't do a damned thing besides go on the Boglehead site and chit chat." :happy

Stud: "The WHO site??" :confused :?:

OB: "Never mind." 8-)
"There are no new ideas, only forgotten ones." -- Amity Shlaes

tony_roach
Posts: 107
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Location: Philadelphia

Re: Are CNBC all day traders?

Post by tony_roach » Tue Mar 03, 2020 10:27 pm

anil686 wrote:
Tue Mar 03, 2020 9:02 am
I know Becky Quick on CNBC only invests in the SP500. She disclosed that about two-three years ago during a WB interview after the annual meeting. They were discussing the SP500 and Warren asked if she was pleased with her investment and she said that she was and that is all she had bought since their first interview in the mid 2000s...

However, you will never catch her promoting the SP500 - in fact the morning hosts are all quizzing the guests on the direction of the market, bond markets, etc. That is because their main advertisers (obviously) make money on transactions and want you to do something. Or they are actively managed funds trying to get you to invest with them at a higher fee rate...

I feel that many of the financial media personalities actually invest like Bogleheads but are worried about retribution from the parent company (due to advertisers) and so are “closet indexers” - not to be confused with the actively managed funds who mirror the index at a substantially higher cost. JMO though...
I watch from time to time for general market news and entertainment...similar to Becky I recall hearing Dominic Chu specifically indicate he only invests in mutual funds/index funds even though he's consistently breaking down stock trends and market trends.

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