Ignore The Stock Pickers On TV

Posted Mar 13 2010 by Gordo in Blog with View Comments

What kind of goof goes on TV to give you free stock advice? First of all, if anyone had any special, and more importantly, consistent insight into the markets they wouldn’t be working for a living. They would be privately making tons of money behind the scenes without showing their cards.

Whenever you see a mutual fund manager on TV giving you advice, they certainly tell a nice story, they sound very educated and researched. But their pay is usually a percentage of the assets managed by the fund. Their goal is to get you to invest in their fund. The more assets they get, the more their pay is.

It’s similar to all those option trading seminars out there that promise to show you how to outsmart the market. If those systems really worked no-one would give away the secret to making billions for only a few hundred dollars. Besides, the more people who know the secrets, the less likely the secret will continue to work.

Look into index funds.

Tags: assets, billions, free stock advice, mutual fund manager, option trading, seminars, stock pickers, tons of money

Tags: assets, billions, free stock advice, mutual fund manager, option trading, seminars, stock pickers, tons of money Category: Blog

Gordo - My first financial advisor screwed me. I'm 6'6" and 260 lbs. I beat him up. Bad. He laid charges but I threatened to post the advice he gave me on the outernet. Charges dropped. Now I expose phonies in my spare time. Welcome to Superbad Advice.

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Weighhouseblog

There's another reason that people give advice in the media. Stock prices are driven partly by fundamentals and partly by perception.By telling their stories, they're trying to shape that perception. Both of the stocks and of themselves.
gordo182

Agreed. If I were an unscrupulous fund manager I would play chicken little on tv after shorting, cover my shorts when people watching tv react and then preach that the easy money will be made as the market realizes we were at an irrational low (after initiating long positions). Hey, it wouldn't be MY money at stake, it would be the investors'.

BTW - love Weigh House. Keep up the good work.
Boondock

"What kind of goof goes on TV to give you free stock advice? First of all, if anyone had any special, and more importantly, consistent insight into the markets they wouldn’t be working for a living. They would be privately making tons of money behind the scenes without showing their cards."

You can make this argument against all kinds of people, especially those holding investment conferences in hotels across the country selling their systems for the FOREX market, real estate investment, etc.

I have a very naive father and accompanied him to a FOREX meeting and was blown away by the response to the presentation. Not one person there asked the simplest question, "If you can make $20,000 a day trading currencies, why are you travelling across the country selling software?"
gordo182

Amen to that Boondock - great point!
Lorne

great website, and best of all , GREAT HONEST ADVICE !!!.....THANK YOU !!!......keep up the great work !!!
Gordo

Thanks Lorne - happy to oblige! :)

Tell all your friends - we need to get this information out to the masses.