Terry Connelly writes for The Huffington Post about what he believes is overly negative coverage of the markets on CNBC.
Connelly writes, “Granted that any TV news organization would rather cover a train wreck than an on-time arrival at the station. But CNBC’s constant denigration of the equity market raises a question: why on earth would the cable network do their level best day in and day out to scare viewers out of the markets that they covers? If the only players left in equities are machines run by hedge funds, who needs to bother watch CNBC? CNBC seems to daily go out of its way to talk down the market and talk investors out of investing. So why should they bother watching TV when it constantly tells the viewers that ‘Stockmageddon’ is just around the corner? Or as one ‘Fast Money’ trader said last week about Ebola: ‘Sell first and ask questions later!’
“CNBC is not alone in this game. Without a shred of data to back up its assertion, USA Today warned that the surprisingly good jobs report of October 3 could lead the Federal Reserve to increase base interest rates sooner than the financial markets expects in 2015, despite the absence of any evidence of emerging inflation. But CNBC is leading the charge to warn viewers that the fall in the Russell ‘small cap’ stock index by over 10%, technically a ‘correction,’ is ‘trying to tell us something’ about a coming downward direction of the US economy (multiple quotes from CNBC trading guru Guy Adami, who is the one who predicts the 2.0% ten-year note, consistent with a coming US recession). Seems to this blog that traders are trying to tell the rest of us to sell out of the market so they can swoop in to buy it cheap because they know darn well the US is not heading or a recession.”
Read more here.
