This Saturday morning (Feb. 7, 2009) I found myself dashing up the North Texas Tollway, running slightly late for a 7:30 a.m. Financial Planning Association meeting.
Finding a void in my regular sports channel radio talk station, I scanned the radio dial looking for something to kill the time. My first stop was on a program already in session talking of the pending market growth sure to come from the stimulus dollars that, according to this personality, would certainly be passed. As I continued to listen — reminding myself that this programming is paid for, and as such the hosts are free to say almost anything — I began trying to guess what their angle was (what were they selling…what axe did they have to grind.) My first guess was gold and my second was some type of market method. My first guess was wrong but I was 100% correct on the second, as shortly after my guess the hosts cut to a promotion for their new market system that specialized in buying common stocks with a dividend.
My next stop on the radio dial found another financial commentator in mid sentence discussing the pending deflation which, in his opinion, not only was the stimulus not going to be passed, but if it did, it would not help our economy and we were certain to have long term deflation. This time my first guess of the axe to grind was some type of bond method and I did not need a second, as quickly a promotion was introduced starring their system of buying certain bonds that would do extremely well in a deflationary environment. They then quoted historical returns from a prior period; the returns were, of course, very good.
As I sat in my meeting thinking about what I heard on the radio, during a break it hit me why so many consumers are totally confused.
In less that 10 minutes I had heard two radio hosts give 100% opposite opinions, and taken at face value, giving two totally different recommendations (again, paid programming often times lends itself to biased opinions.)
Please be careful of the information you allow to influence you, as many times there is an axe to grind; for example, a question at a Ford Dealership about a GM product results in an obvious answer. Financial market lingo is more complicated and as such creates a certain false sense of confirmation and delivery. JK