A Closed Mouth Gathers No Foot
That is what a wise man once said…
Today I saw on CNBC that Perma Bull Jim Cramer did his Doug Kass impersonation and made his low of the year market call. I’ve seen some clips of the recent interviews on Bloomberg and CNBC featuring Meredith Whitney, Nouriel Roubini, Gene Munster, Dick Bove, etc. and if you’ve read my CNBC cheat sheet you too can be a psychic and guess what they had to say. These days I’m inclined to just put my TV on mute whenever someone from the CNBC cheat sheet appears because I can already tell what they will have to say.
The problem here is that we are all biased with an opinion. Just about every market prognosticator brought on air has some sort of position in the market. Whether it’s called “talking your book” or “reflexivity” or simply stating an opinion because it’s their job to, we can never truly be neutral making market predictions if we have a vested stake.
Remember Cramer also said to buy Bear Stearns and Kass also said to buy Lehman Brothers before both companies wound up in bankruptcy. It just goes to show you that you really have to do your homework and you can’t rely on the flip flop positions of the CNBC commentators.
