Why You Should Not Rely on Mainstream Media for Investment Advice

I am currently reading a great investment book by Jesse C Stine.  With every new page, I am starting to realize the mainstream media is not the one-stop center of investing.  I have a few ideas about why this is the case.

Mainstream financial media outlets are news based.  Think about your local newspaper.  The news is a business and must sell papers to stay in the black.  If the owner of the newspaper is not selling copies, he will be out of business in no time.  Financial shows must be marketable to the public to stay on television.

Furthermore, the stories on television may not be entirely true.  Ratings matter and the producers of the financial shows are watching to see what sells.  Think about television reality shows for a moment.  In the beginning, reality shows were only on a few networks.  Now many television networks are airing different versions of the television format to draw viewers.  Reality shows are popular because people love watching them.  I think the same holds true for mainstream financial media.  Once again, what sells controls what is on television.

In addition, one must also be mindful of this when he or she selects investment books because the same thing holds true here.  A lot investment books on the market have a lot of hype and outdated investment information. Be very careful and examine the quality of information before making any decisions.  If someone is going to the dentist for a root canal, I know that person will want a dentist who has experience with the procedure.   It helps to read books by authors who are able to show and demonstrate how they have been successful with their investment strategies.

In conclusion, I know we all love to watch financial shows. However, we must realize that we cannot rely solely on the advice given on television.  We must do research and partner with an experienced financial planner to develop a sound investing strategy.  I will talk more in detail about this groundbreaking investing book when I am finished reading it.