I have some financial advice for you if you are young.
Take the advice you see on CNBC with a grain of salt.
I suppose it’s OK for you to watch it for entertainment purposes.
I understand. Sometimes we are just so bored we have to listen to something.
The problem with CNBC is several fold.
Number one it gets you into the mindset of constantly buying and selling stocks.
Buy low, sell high, Jim Cramer will tell you. Pigs get greedy, hogs get slaughtered, or something to that effect.
I used to be of that mindset, and I didn’t make a dime.
I think it’s far better to choose a stock that you use, that you believe in, and hold that stock for eternity.
Forget about trying to time the market. That cannot be done.
There may be several stocks that you believe in, that you use. It’s okay to invest in those stocks.
But to be getting involved in the million and one stocks that are promoted on CNBC is a mistake.
It’s not possible for you to know all those stocks. There isn’t the time of day.
Hucksters abound and speak cleverly. It takes time to ferret these people out.
Investing in a few stocks that you know well, that you have taken the time to research is much better than being a jack of all trades at all of them.
Number two, CNBC invites you into the casino.
It gets you into the mentality of gambling.
Don’t be a gambler; be an intelligent investor who researches his stocks.
The problem with walking into the casino, is that you gradually get lured into one of the biggest scams of all: options.
This is akin to stepping over the threshold of Dracula’s castle. Once you step over the threshold, he owns you.
Stay out of the options market. You cannot win that game over the long run.
If you believe in the stock, own the stock; If you don’t believe in stock, stay away from the stock.
Betting on the month-to-month movements of a stock is a fool’s game.
Do not buy put options. Likewise, do not sell short on a stock. You will lose your shirt.
Besides that, when you buy put options or sell short, you are betting on someone to lose. I don’t care how you justify it, you are betting on someone to lose.
It’s not a morally defensible position.
This is important because we live in a moral universe.
Number three, CNBC, its hosts, its principal guests are mostly members of the empire.
They wholeheartedly support the rigged casino that is the stock market.
CNBC contributors can huff and puff, they can stomp around the room; the stock market is rigged.
The ups and downs of the market are moved by the elites and the whales.
You are a minnow. You are not going to move markets.
Even if you get together with like-minded people on Robinhood, the power elite will still stop you.
You cannot win the game on the day-to-day movements of the stock market.
Number four, CNBC lulls you into thinking that it is the news that drives the markets.
They will constantly talk about various government reports and the market’s response to that. They will show you the Dow futures moving up or down in response to the god-almighty jobs report. The obvious conclusion then is that the news drives the market.
No, the news does not ultimately drive the market. On the contrary, the news is used as a justification for why the markets move up and down.
One day the CPI is used to justify the rising market. The next day, on a down day, the same CPI is not used at all.
It is the elites who use the news to justify the movements that they choose. Bad news does not always lead to a market going down because the elites can say, “Well, the news wasn’t as bad as we thought it was going to be.” The same trick can be used for good news but in reverse.
The market is rigged.
It’s rigged so that the brokerage houses can more or less reliably put out a return on investment for their clients.
It’s called managed finance. That’s my term.
Number five, CNBC confers pseudo-expertise on young hotshots who claim special clairvoyance about the markets.
Nobody can predict the future.
These glib hucksters barely out of their 30s talk a good game. They use a lot of numbers. They use a lot of jargon also. I think they have a guy standing behind the curtain who is cranking out new jargon on a jargon machine.
Their slick delivery will convince you that they are smart and you are not.
Stay away from them.
Better yet, stay away from CNBC.
CNBC?
They are the carnival barkers for the casino. They stand outside and say: “Hey, come on in. Join the party. Have a drink.”
It’s quite enticing.
Years ago, on my first trip to Las Vegas, a taxi driver pointed toward the gleaming casinos in the distance and said to me: “Those casinos weren’t built on winners.”
I know what you’re thinking. You’re thinking: “I’m young, I’m smart, I’m hot, I’m the master of the universe, I’ve got this game beat.”
No, you don’t.
In a casino, the house always wins.
Sincerely,
Archer Crosley
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Cowboy Archer 