Article based on Great prophecies of the media, by Francisco Toledo.
Let's talk a little about the information we received about stock markets.
Let's talk a little about the information we received about stock markets.
It seems good to have plenty of
information, so lets take an initial look at the financial press, and
how it can help us to invest in a safe way our little savings...
To begin with, let's look at the some
covers of newspapers, starting some years ago on October 22th, 1929,
just 2 days before black thursday, the D-Day in 1929 crisis.
It is well known, everybody could
become rich just putting a few bucks in Wall Street.., or maybe
not.., but experts didn't
hesitate giving ONE advice, BUY.
I recommend reading that article, even more now that we know what happened..., also the one at the left, about opening craniums with saw instead of hammer for brain surgery..
Later, in 1979, Business Week magazine
published that stock markets were dying. After some years where
stocks didn't grow much, with increasing inflation after petrol
crisis in 1973.
Here it is the cover in detail:
The thought behind this cover was that
stagnation in markets growth lead people's money to monetary funds
and federal and municipal bonds, so, forget stocks...
After a couple of years stock markets
started a rally that lasted until Dot-com bubble exploded...
We could find plenty of similar examples, just need a little googling.. For example, more recently, after first correction
in the markets in may 2012 after the crisis, Financial Times repeated
title of Business Week, The Death of Equities, do
journalists like that sentence that much??
Of course, history repeats, now just
maybe at higher speed...
So, covers are never wrong, put your money in stocks, Dow goes to
36000!!!!!
Or not?
Don't dismiss this topic as if you
think it has nothing to do with you.., where do you think your
pension fund is? In most of cases in funds lead by mediocrity
principles, following the crowd, that follows the media.
There is even a trend in investing that basically follows the media, and other published data, to do the opposite, contrarian investing.
No comments:
Post a Comment