Shoddy media reporting on the market

Wed. 5:30 AM — It seems every day I grow more and more disenchanted with the so-called reporting coming out of outlets the average citizen has routinely turned to in order to gain some guidance on the market.
I won’t rehash the gory details of past sentiments I’ve expressed in this forum regarding sources such as The Wall Street Journal and CNBC either being very late to the game in reporting things that I broke right here months earlier, or they’re only giving half the story.
If you’re interested, look through previous columns here for examples such as the WSJ’s report about mortgage insurer’s blacklists that came out months after my more elaborate report right here and CNBC’s penchant for bringing in experts to discuss opening more oil reserves off the coast of the U.S., without ever bothering to point out that every single one of the very limited supply of drill ships throughout the entire world are booked solid for years in the future.
I just hate crappy reporting — especially when it only presents half a story to people trying to gain insight on where to invest their hard-earned cash.
Today I read another story in the Wall Street Journal that made me just want to toss my paper and wonder why I bother reading it anymore. The story reported that yesterday the Dow Jones Industrial Average had its best one-day gain since April 1.
What I really want you to focus on in what I just wrote is “one-day.”
One day does not make a market.
Nor should it deserve a prominent placement in The Wall Street Journal.
It is not the media’s role to declare a bottom — a reporter’s job is to report the news — not to create it.
The story tries to tie this gain to the “plunging oil prices and reassuring signals from the Federal Reserve.”
Oh please.
Get serious.
While it’s true that oil did break below the psychological number of 120 and the fed is doing a bit more than it did a year ago — this is nothing but shoddy reporting trying to oversimplify a market that can be described as erratic at best.
It’s time for the media to just report the news and stop trying to declare a bottom, such as Jim Cramer has done over at CNBC.
No so-called expert can declare a bottom is in, just as no one can declare a top — the market will declare itself by showing a trend of consistently trading in one particular spot for a consistent basis.
Just as the same WSJ story goes on to point out that some investors feel this is just another false start, that a recession is looming and the housing market is still a mess — it only drives home one point — no one knows for sure.
The lesson here?
Don’t look to the media to declare a bottom to this market — they don’t know anymore than you do.
Look for a trend in the market — you can spot it just as easily as the next guy.
Just remember not to base any of your investment decisions on anything you read here — do your own due diligence — or at least enough research to pick the right professional to do the investing for you.

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