Saturday, October 13, 2007
I don't want to come off as a conspiracy theorist, but the media has tremendous power over the financial markets. Turn it on CNBC or Bloomberg and watch the reports with a suspicious perspective. Before a correction the media will start getting real negative and jump on any bad news and beat it to death. Subprime mortgage of late is the best example. The media tried to scare investors out of the market and kept calling for a 10% correction. When you start hearing that talk it is time to start liquidating some of your more risky positions.
Take a look at the cover of this weeks Barron's (picture above) and judge for yourself.