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Last Tips & Tricks

Do you watch financial TV Shows?

Stock investing tips by Mike Langevin


I admit that each day I spend some time watching financial TV shows. I am amazed each time by the sensationalism that is given to events that move the market.

The market dropped 200 points on Friday and the hosts of CNBC were eager to invite the most pessimistic analysts they could find. Everyone is comparing the decline to the beginning of the financial crisis in 2008, the financial system is on the verge of collapse, investors are running to the bank to retrieve their money as if it were to disappear overnight. There is no doubt in my mind that the financial TV shows are responsible for a portion of the correction by creating panic that frightens investors.

All the financial news seems as if our investment horizon was limited to only a few days rather than several months or even years. It is not surprising that investors panic when the market goes through some turbulence. But is a market slide of 200 points really so important? How important is the latest financial news for the average investor?

For the long term investor, the daily movements of the market is just like low level static noise, not really important. I think one of the worst things for the long term investor is to follow too closely ones portfolio with the real time information that is too readily available to us. The majority of news blitzes fade over time and provoke no real consequences over time.

It is certain, even after having written this article I will not stop watching financial TV shows. If you also enjoy these shows, you don’t have to stop watching either. However, be aware of how you react to these shows. If you intend to blindly follow their recommendations, maybe you should zap the remote to your favorite sports channel or something. But if you use these Shows as a source of information and as a learning tool for researching companies, then they could defiantly provide great value to you as an investors.

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