Wednesday, June 16, 2010
The Main stream media is always wrong on Market directions.
I could see at least some Technical Analysts could vaguely register their suspicion of a impending top in Stock Markets.On contrary everybody was bullish on Stock Markets at that time. Now check what the media has said during October 2008 crash. Now at this time, the whole world media was bearish on Stock Markets. The reverse happened here. Nobody warned of an impending bottom at that time. The Markets world over rallied from October 2008. This shows the mainstream media is always when it comes to report about the market.
The main reason for the media to get caught in the wrong side of the market is because of the technical position of the Market. When majority of the Market participants are bullish on any market, the main stream media is also bullish on the markets. But technically, when every body is bullish, market would have reached its full buying potential. So this lead to change of trend.
For Investing in Stocks, don’t follow what is media is telling you. Take your decision on your own.