On Financial Advisors Watching TV
By Barry Ritholtz - January 21st, 2010, 2:37PM
I spoke at a conference recently at a major bulge bracket firm. A friend introduced me to a bond manager who runs an enormous amount of money.
He is not the typical manager. He said one of the most amusing things I’ve ever heard:
“Isn’t it funny when you walk into a investment firm, and you see all of the financial advisors watching CNBC — that gives me the same feeling of confidence I would have if I walked into the Mayo-clinic or Sloan Kettering and all the medical doctors were watching General Hospital…”
-Senior portfolio manager, UBS
Classic! I love learning that I am not the only one with an irreverent view of my industry . . .
Thanks, Mark!
De.li.cious
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January 21st, 2010 at 2:40 pm
Priceless. And so true!
January 21st, 2010 at 2:49 pm
Thanks, BR. Love you, too.
January 21st, 2010 at 2:50 pm
maybe the are looking for those contrarian indicators that spew forth- or maybe it’s just for a laugh-
for example- I was watching a movie “The Happening” several weeks ago- horror/suspense genre I guess- but it was very funny- unintentionally so- especially when they were trying to out run the wind- which had me in stitches-
CNBC has that same quality
January 21st, 2010 at 2:53 pm
LOL
January 21st, 2010 at 2:57 pm
Working in the financial advisory industry, I am well aware what people are doing in their offices. Basically, those that have been around a while are waiting for the phone to ring and money to fall in their laps, like it has in the past. Those that are just starting out are burning the phones up, trying to find 2.00 to invest.
Apparently, rich people are just falling off trees like f’ing crabapples!
January 21st, 2010 at 2:59 pm
Why limit it? Anyone who watches those programs deserves to get it in the neck.
Time after time I hear them saying “without naming names….” WTFIT??
Don’t name hames?? And this is considered kosher when names are the only things that truly matter in getting to the bottom of …….oh, wait a minute…….
January 21st, 2010 at 3:05 pm
mathman-
no doubt- I saw that earlier- exactly what we don’t need
the corporation’s rights aren’t being violated- it’s more that we’re being violated by the corporations
January 21st, 2010 at 3:07 pm
If you are an Obama fan, here’s a simple one point plan to regain his approval ratings:
Send the National Guard into CNBC. Nationalize the station, publicly torture Cramer, take CNBC off the air.
Guaranteed 20 points jump.
January 21st, 2010 at 3:15 pm
this makes me chuckle-
“China declares crisis past, inflation a concern” – yahoo finance
hopefully they aren’t relying to much on the “old” dynamic of the American consumer-
if they are- they may be in for a bit of a shock when they find their factories aren’t churning out what they use to in exports
January 21st, 2010 at 3:17 pm
@ahab: Property values up 68% in Shanghai over the last year. But there’s no bubble going on over there. Nooo sirrieee bobby. LOL.
January 21st, 2010 at 3:22 pm
manny-
not at TA today? either bergie’s or CV’s?
also- re China- I think they really went the stimulus route which has artificially pumped the economy- however- remains to be seen if the American consumer will recover any time soon- could be years/decades- also a bit of a backlash against China going on- did you see Denninger’s piece?
January 21st, 2010 at 3:25 pm
microcap:
CNBC’s target audience isn’t big enough. It’s probably good for a five point bump, though.
January 21st, 2010 at 3:39 pm
@ahab: I’m bouncing around a bit today.
January 21st, 2010 at 3:43 pm
Calvin: maybe a public flogging of Kudlow and Kneale would be good for another 5.
And tarring and feathering Ben Stein could really get him all the way back! He’d at least get all the votes of regular BP readers then! LOL
January 21st, 2010 at 3:43 pm
Down here we do watch it but nobody takes their opinions / analysis seriously, I mean come on!
January 21st, 2010 at 4:04 pm
Harsh! I would have been nice about it and said Grey’s Anatomy or something.
We keep it on for ambient energy and for laughs. They won’t let me watch SpongeBob, so I keep the headphones handy.
January 21st, 2010 at 4:08 pm
I bet Jim Cramer watches CNBC to prepare for his show.
January 21st, 2010 at 4:13 pm
Yeah, it is on here periodically as well. It’s like investment porn and nobody takes it seriously; we all prefer Bloomberg but CNBC is quicker if you are doing anything event driven in stock land. But Cramer, how embarrassing. It’s not like many other professions have to suffer such a public clown.
January 21st, 2010 at 4:16 pm
“To a philosopher all news, as it is called, is gossip, and they who edit and read it are old women over their tea.” ~ Henry David Thoreau
January 21st, 2010 at 4:42 pm
Yup. They love the sell side and watch it to get pointers on how to keep the commissions coming in. It’s all about getting the talking points of the day straight. Where else to go?
Every now and then you see someone who questions the intelligence of anyone who puts money into a gamed market. Upon which each is dutifully thanked for their contribution and then the viewer is teased to wait until after the commercial to see the next group who promise to show you where the big opportunities are, followed by more sales folk. It’s the infomercial network, with adequate deniability.
I suspect the HFT programs might need a bit of tweaking now. One intangible aspect was to use a ‘go boldly’ strategy because Uncle Stupid was underwriting the market. The programmers will now be looking to see if Barney Frank (please fire him) wins in delaying the free ride or if Uncle Stupid actually bumbles into a little control. Also, I wonder if there is any subtext behind Uncle Stupid’s new plan or if what we heard was the maximum intent, soon to be followed by normal incompetency?
January 21st, 2010 at 4:52 pm
That is great. I must use it for my FB page.
January 21st, 2010 at 5:14 pm
The producers of General Hospital should take offense at this manifest slap in the face.
January 21st, 2010 at 5:16 pm
Sad but true. Laughed out loud. Thanks, Barry.
January 21st, 2010 at 5:33 pm
I think they may be off the air!
January 21st, 2010 at 6:20 pm
Brilliant!
January 21st, 2010 at 6:48 pm
If anyone was surprised by the Mass. election, here’s some really bad news:
http://www.msnbc.msn.com/id/34822247/ns/politics-supreme_court/from/ET
and, as if we didn’t know:
http://www.zerohedge.com/article/scandal-albert-edwards-alleges-central-banks-were-complicit-robbing-middle-classes
January 21st, 2010 at 7:13 pm
This did make me ROTFLMAO.
I do remember how deadly these channels were back in the day. I am sure you remember Dan Dorfman. He used to come on CNBC around noon and say things like I am being told Salomon is buying X, C, GM or whatever. Option Traders and Equity Specialists, especially equity traders on regionals that had auto fill programs based on best bid/offers, would get their backsides ripped because a manula order for 100 shares wouldn’t get taken down. The exchanges often had rules committees that would not rule the order was filled incorrectly in order to hold unto order flow. The exchanges soon bought cable and had the screens put in over the posts. They replaced the screens w/ the Dow, Knight Ridder and/or Reuters crawl which at least gave everyone the same chance at info as there were no automatic computer hardware driven order machines.
January 21st, 2010 at 8:19 pm
Scary.
Remember, Puzo’s “Godfather” book actually made some of those guys believers.
Life imitates art?
Buy low, sell high.
January 21st, 2010 at 8:49 pm
“Isn’t it funny when you walk into a investment firm, and you see all of the financial advisors watching CNBC — that gives me the same feeling of confidence I would have if I walked into the Mayo-clinic or Sloan Kettering and all the medical doctors were watching General Hospital…”
Excellent! Love this post. I think that rolling dice or using a Ouija board would be about as effective at investment advice compared to these people…. haha
January 21st, 2010 at 9:12 pm
CNBC IS a source of both contrarian commentary and news that individuals BELIEVE.
Knowing what the masses accept as fact is helpful when talking to them. Of course, anyone who keeps it on all day is either too lazy to turn it off, in need of ritulin because they clearly are overstimulated and need help focusing, are teenagers, self delusional or just stupid.
Do not underestimate how powerful CNBC is with main street. The commentators encouraged buying tech in ’99/00, panic post 9/11, selling before the war in March ’03, buying real estate after that with countless shows about how prices are going up, up, up. Touting bond funds in the last 6 months based on trailing 12 month returns. And finally, how many of you have heard someone say how great K/Cramer is. Jesus. They actually pay attention to CNBC and it is helpful to know what they are being told. And so the lambs are led…
January 21st, 2010 at 10:15 pm
Not for nothing, but I absolutely love hearing CNBC is the popular channel. I suspected as much having spent way too long, almost decades on the Street in one firm but am glad to hear it is widespread. I use it as a foil, a spitoon, a silly farce, a tale told by idiots, signifying nothing. Nice to hear the the phone-in beaucoup moolah accolades to Cramer…enjoy what you see, that they got! With gratitude, BR.
January 21st, 2010 at 11:26 pm
I can’t imagine paying attention to CNBC so long as Bloomberg videos are available.
Then again, I don’t work in the biz. So, what do I know…
January 22nd, 2010 at 12:21 am
Just because they have CNBC on the tube, doesn’t mean anybody is watching. I bet most are twittering or checking out their facebook page. The guys maybe be watching to catch a little clevage on some of the info babes. Remember the days when looks didn’t matter that much. Now you best have a nice set of jugs if you want to get a decent spot in front of the cameras. How much of a brain does it take to stand in front of a group of screens that show the movement of different stocks. Just look sexy and point to the wall. Say GS is up again and don’t forget to mention those green shoots.
January 22nd, 2010 at 1:53 am
Great observation, reminds me something of Lemmings!
January 22nd, 2010 at 9:06 am
rock’n'roll took a siesta .. we 60′s generationers gotta have background of our lives on .. might as well be the soaps of the real real world .. how much it sinks in depends on IQ in my opinion .. & why tv works
http://en.wikipedia.org/wiki/Siesta
http://en.wikipedia.org/wiki/Iq
January 22nd, 2010 at 11:06 am
Great analogy, so true! Although I agree that most probably don’t heed investment advise spewed from CNBC and view it only for the line of the day/talking points to impress clients or they block it out all together (based on my own experiences) although you never know. CNBC has been on in most offices since it started.
IA shows up for his first day just after the bell….
IA: This is a brokerage office, I can see CNBC playing right there.
Office Manager Mr. Hand: Really?
IA: May I come in?
Office Manager Mr. Hand: Oh pleeeaase. I get so lonely when that bell rings and I have no Investment Advisors to talk to.
IA: Sorry I’m late, the market schedule is so confusing…..hey…(IA points to another brain dead fool) I know that dude.
Office Manager Mr. Hand: Investment advisor Spicoli……
IA: That’s the name they gave me.
I would suggest that some IA’s in the industry try paying attention to CNBC, every once in a while they might get lucky which may actually be an improvement over the proprietary research that is Mr. Handed out to some of the brainless tards.
Ouch.
January 22nd, 2010 at 2:23 pm
What do you call Investors that listen to CNBC talking heads? BROKE!!!!!!!!!
January 23rd, 2010 at 1:14 am
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