Why Is CNBC Telling People To Buy Stocks?

[Yavin4]

There have been 11 trading days so far this year, and the DOW has seen triple digit losses in 5 of those days. Yet, the talking heads on CNBC kept saying that now is a good time to buy stocks.

First, we don't know if we're in a correction or in a Bear market. Second, we have no idea of the political future for this country. We don't even have a strong front runner in either party at this moment, and we may not have one until the conventions begins.

IOW, there are loads of uncertainty, and buying stocks now is foolish beyond belief. It's like telling people to buy a house that's on fire.

[havocmom]

1. Because large brokerage firms buy ad time?

AND if enough people really stopped buying stock paper, the ponzi scheme would fall enough that everyone would be forced to notice that we don't make much besides stock paper in America?

[BanzaiBonnie]

2. It's a shell game and someone's about to pick up all the shells

and find they're all empty.

[CGowen]

3. Wasn't CNBC endorsing toxic food ?

http://www.crooksandliars.com/2007/08/12/cnbcs-erin-burnett-we-need-chinas-toxic-food-and-lead-coated-toys-to-keep-economy-strong/

[Warpy]

4. The other reason to buy stocks is to buy ones that pay dividends

It doesn't matter what the face value of my stock says it is. If it makes a profit, it pays me a dividend every quarter. That plus interest on bonds are what I'm living on, not any profit made from rapid turnover in the stocks I hold.

Buying dividend producing stock and/or interest producing bonds is how you eventually get to make your money work for you, at least providing enough income that you can do a little better than mere survival on social security.

Personally, I think we will be in a bear market until the GOPs are gone and those reckless tax cuts overturned and probably for some time after that.

Recovery for this economy is going to have to start at the bottom before things get better in the stock market.

[Yavin4]

5. That Is Until They Cut Dividend

Which is what Citibank just did.

We're in a bear market until all of these bad housing loans are washed out of the system and housing prices reflect the reality of incomes.

[SlowDownFast]

6. Because they are the mouthpiece of Wall St Robber Barons. n/t

[tuckessee]

7. Simple. If we don't buy (& buy alot) their house of cards comes crashing down. n/t

[TalkingDog]

8. It's like being in a falling airplane. If you want to avoid dying

you just jump off before it hits.

I think they are desperately trying to suggest we've hit bottom and the uptrend will start any day now. And if that were the case, it would be a GREAT time to buy stocks. Previously pricey stocks would be dirt cheap and stocks like Coca-Cola,(just for instance) which only ever increase in value (at my last check in, they may have had a slowed down since then) might be worth getting for retirement.

But IMHO (and I know very little about "playing the ponies" this is just my "blink" weighing in) we have not come close to sounding the depths. It feels like a much, much deeper hole has been dug for us by the spendthrifts in DC.



My Favorite Master Artist: Karen Parker GhostWoman Studios

[crazymans economics]

9. Because they're all aligned toward the same goal...

Vanguard Founder Jack Bogle calls it a "Happy Conspiracy", I call them the "Masters of Illusion and Deception" in my upcoming book. Either way, its in the best interests of CNBC, Fox News, The Wall Street Journal, et.al. to promote the markets, not report on them.

It's not evil, but simply economics. Their livelihood depends on ratings and good will from a strong market. Positive coverage gets more access to the Fat Cats. And they continue getting invited to all the best parties.

I've been arguing to get out of the markets completely, but even if you don't believe that, I can safely argue now is NOT the time to get in.

[DavidMS]

10. They drink their own cool aid?

If you want to see some of how this works, ask a real estate agent about the housing market...

The reality is that its not that the newsmodels are clueless its that they aren't like us and earn 4x what we do and as a result have a vastly diffrent view.

Its always a good time to put a couple dollars into a balanced portfolio. Needless to say its also important to adjust the balance (slightly) as market conditions change. Its not particularly wise at this point to make big bets on the solvency of Citigroup or Bank of America. And remember only gamble with money you won't miss loosing.

There are some better segments in the economy, like green tech, carbon neutral energy, biomimicry, etc. Even GM is buying into ethanol.

[KillCapitalism]

11. Because they want YOU to prop up the market...

but there's a catch, they also expect you to take the hit when the house of cards collapses.

I say NO THANKS!