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  A lot investment books on the market have a lot of hype and outdated investment information.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.

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How to Protect Your Investments During an US Economic Collapse

I have watched shows on CNBC about investment scams.  I have learned a lot while watching the shows.  The situations are different, but the outcome is always the same.  The victims were penniless while the criminal walked away with millions of dollars.  Here are some tips to avoid losing money.

1.  If it is too good to be true then it probably is just too good to be true.  In many cases, the con artist promised the victims ridiculous figures on the returns.

2.  Background checks are necessary.  Most scam artists are great social engineers and know how to manipulate people. Investors must do background checks to make sure the investment is solid.

3.  Be care in using your primary residence to invest.  In many cases, the victims took out home equity loans to finance investments in the scams.  This puts the investor at a disadvantage if things turn bad.  Using the primary place of residence can be a particularly dangerous risk.

4.  Stick with proven investments that continue to perform over time.  Gold and silver are solid investments.  Real estate is also an excellent opportunity.

5.  Always check with a trusted financial planner before investing.  In addition, a financial planner can help an investor research and analyze financial trends.

In the event of an economic collapse, an investor can not afford to lose money in a scam.  I feel some would try to use the threat of a stock market crash to create a panic mentality and a sense of urgency.  Fear and desperation create the perfect atmosphere for social engineers to take advantage of people.  I would recommend being very conservative in any financial or investments decisions. I truly believe an economic collapse is imminent, and it is just a matter of time.

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