Lose the Wall Street Research MSMedia Blogs

Sometimes, these things just all come together at once:

The other day, someone sent me this rant by Scott Ritter (video below). Ritter goes off on a tear, but he makes some valid points. Note the crowd’s response not to his criticism of Bush or Congress, but if the media (I find placing so much blame on the press a little weird).

Then this evening, I see an interesting rant by Felix Salmon, Blogonomics: What CFAs Read, referencing another article: Blogs Slow to Influence Financial Advisors. Felix was not than enthralled with the CFA article.

I want to suggest another, perhaps more insightful approach.

The article in question is somewhat mixed in its criticism of blogs — but it has the sort of common sense bromides that can be applied to almost anything about investing. Like CEOs, or Wall Street research, or the mainstream media — anything some people accept mindlessly.

Indeed, you can rewrite the article: Anywhere you see the word "Blog" substitute the words "Wall Street Research" or "Corporate CEOs" "Business Press" or "Mainstream Media." The end result is nearly the same.

Here’s my rewrites (in italics):

“I don’t want to leave the impression that I would invest a client’s money based on a tip from a Wall Street Research.”

“Many who write articles in the Business Press are not professionals, most are not even licensed to render financial advice.”

"Russ Thornton of Thornton Wealth Management looks to the Mainstream Media for good “talking points” from investors whose investment strategy is similar to his. ‘It helps to see how others communicate and share investment concepts so I can become a better communicator myself.’ " 

"Some Corporate CEOs may offer useful information, but even their fans believe you should approach them skeptically."

Hey, that’s pretty sharp stuff!

The article appears to be about blogs, but its really about critical reading and independent thinking. At least, that’s my take. Note we previously discussed similar issues in Lose the News . . .   

>

Previously:
Lose the News (June 2005) 
http://bigpicture.typepad.com/comments/2005/06/apprenticed_inv_1.html

Who Do You Trust?  (January 2008)
http://bigpicture.typepad.com/comments/2008/01/who-do-you-trus.html

Source:
Investment Strategy Blogs Slow to Influence Financial Advisors
Susan B. Weiner, CFA   
Advisor Persepctives, August 19, 2008    
http://www.advisorperspectives.com/newsletters08/Investment_Strategy_Blogs_Slow_to_Influence_Financial_Advisors.html

Category: Apprenticed Investor, Financial Press, Psychology, Weblogs

Watch Out For the Bears!

Category: Markets, Psychology

Quote of the Day: “Beware of Conviction”

Category: Markets, Psychology, Trading

Quote of the Day: “Beware of Conviction”

Category: Markets, Psychology, Trading

A Bottom in Housing? You’ve Got to Be Kidding!

I have an interesting discussion on Housing later this week, but for now, let’s look at this Yahoo video n another bottom call in Housing.  (Note that the charts discussed are linked below)

Here are the relevant charts regarding Home Sale and Rental ratios, as well as Median Income and Home prices.

Charts:

Median New Home Prices vs Median Household Disposable Income
http://www.comstockfunds.com/files/NLPP00000/312.pdf

Home Price Appreciation vs CPI – Rent
http://www.comstockfunds.com/files/NLPP00000/313.pdf

   

Previously:
Revisiting Housing Seasonality & the Perennial Bottom Callers (July 1008)
http://bigpicture.typepad.com/comments/2008/07/revisiting-seas.html

Source:

A Bottom in Housing? You’ve Got to Be Kidding
 
Henry Blodget
Yahoo Tech Ticker Aug 13, 2008 07:30am EDT
http://finance.yahoo.com/tech-ticker/article/47438/A-Bottom-in-Housing-You’ve-Got-to-Be-Kidding

Category: Real Estate, Video

A Bottom in Housing? You’ve Got to Be Kidding!

I have an interesting discussion on Housing later this week, but for now, let’s look at this Yahoo video n another bottom call in Housing.  (Note that the charts discussed are linked below)

Here are the relevant charts regarding Home Sale and Rental ratios, as well as Median Income and Home prices.

Charts:

Median New Home Prices vs Median Household Disposable Income
http://www.comstockfunds.com/files/NLPP00000/312.pdf

Home Price Appreciation vs CPI – Rent
http://www.comstockfunds.com/files/NLPP00000/313.pdf

   

Previously:
Revisiting Housing Seasonality & the Perennial Bottom Callers (July 1008)
http://bigpicture.typepad.com/comments/2008/07/revisiting-seas.html

Source:

A Bottom in Housing? You’ve Got to Be Kidding
 
Henry Blodget
Yahoo Tech Ticker Aug 13, 2008 07:30am EDT
http://finance.yahoo.com/tech-ticker/article/47438/A-Bottom-in-Housing-You’ve-Got-to-Be-Kidding

Category: Real Estate, Video

His Name is Mudd

Category: Bailouts, Corporate Management, Credit, Legal, Real Estate, Valuation

Category: Bailouts, Credit, Taxes and Policy

Quell the Commentary!

> If only no one had mentioned Fannie or Freddie over the weekend . . . > After a Yahoo Tech Ticker appearance earlier this month (Battle Over the Bottom in Financials) I received one of my all time favorite pieces of email. It was so damned good I simply had to pass it along:…Read More

Category: Markets, Psychology

Going Down?

Category: Real Estate