CNBC for a long time now has been the most popular network for investors looking to get non stop coverage of the stock markets. They have the fancy sets and the pretty anchors who make the network look like it is right out of Hollywood, not Wall Street. They parade a constant stream of guest analysts before the cameras who are more than willing to give their opinions and stock picks while giving their firms some free publicity.
But recently it seems, CNBC's popularity has been declining and I have to say that that is very good news. That is because I think watching that network day after day is a total waste of time that will hurt your ability to think clearly and make the best stock decisions you can.
One thing that CNBC does is give the viewer the impression that you've got to be an active trader to be a good investor. You have to be making moves all the time, buying the good stocks and selling the bad ones out of your portfolio. Just sitting and doing nothing is boring and the industry makes more money when you are active and paying fees and commissions.
CNBC is a constant barrage of information that is overwhelming when you watch it for any length of time. It makes you want to get on your computer and push the "buy" and "sell" buttons just because this or that pundit told you he/she thinks that is the right move.
Investors of most levels are too easily swayed into buying stocks just because they see someone on television recommending them. Analyzing a company and trying to figure out the future prospects of a stock is difficult and beyond the ability of many investors. Thus they watch CNBC and do as they are told by the so called "experts" who most often have no skin in the game.
I suggest you turn off CNBC or severely limit your time watching it. Instead spend that time reading all you can about the economy and thinking about what industries will have a strong future in the coming years. Learn what companies are the leaders in those industries and find out all you can about those companies. Pay keen attention to what people are wearing, doing, eating, and how they are spending their time. Try to identify the companies that are growing or will grow as they satisfy future customer demands. Those are the stocks that you might think about buying.
Or you can just put your money every month into index funds which have been proven to outperform most professional money managers. The important thing is though, to stay away from frequent trading based on what you see the "pros" recommending on CNBC.
