Run:
"So can we say most of the time, cnbc and most of the people on their shows are misleading people?"
That's definitely NOT what I'm saying. I'm sure there are plenty of people on CNBC who are highly skeptical of this rally. Even those that may say it is some evidence (or sign) of a bottom or turnaround may actually believe it (not to mention they could be right).
Having given CNBC the benefit of the doubt, I don't question for a split second that there are boiler rooms all over the place that are burning the phones today saying.......
"Mr. Smith, you simply cannot argue with the market. The market spoke loud and clear today. The bottom was established at the close on Monday. You simply have to get in NOW so that you don't miss the next "bull" market. As you know, bull markets can be 20% a year or more!
Tell me Mr. Smith (Can I call you John?). Tell me John, do you have any kids? How old? So, you are already thinking about how to plan for their college. As you know, the best investment in world history (over time) has been the US stock market. Sure, you can put your money in a CD or a money fund or your mattress, but with inflation way more than the government is reporting (and I'm sure I don't need to tell you that) that money you are not investing becomes pretty worthless. As a savy investor, I'm sure you know that historically, the best (and sometimes the ONLY) way to prepare for retirement or college education or a bigger house is to put your money to work in the stock market. At your age, you should be putting 100% of it in and you should be putting it in at exactly these times - when the bottom comes and when the markets begin their turnaround.
Fortunately for you, I have two brand new picks by our company that have superstar status written all over them. Market bottoms and new opportunities at the same time. That's what I call good luck. Now, if you have a few minutes, I'll give you a quick overview of these two winners."
That paraphrased speel was blabbered millions of times to unsuspecting Nasdaq buyers every single time there was a bull trap from 3-00 to 10-02 when it dropped 78%. There's a sucker born every minute and these guys know it.
Len
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