Winter 2019

“Is today a greed day or a fear day?” This is an actual question asked behind the scenes of one of the major business news networks prior to their broadcast, according to my sources. You know which networks I’m talking about: CNBC, Fox Business News, MSNBC, and CNN. It make sense, though; I mean they are all for-profit networks and their goal is to make money. So, what sells? Bad news sells.

In our office, it is pretty rare that someone calls in with grave concerns because the news just reported the stock market is up 800 points. By “pretty rare,” I mean that I have never experienced this in my 23-year career. However, when the reverse happens, it can result in a few phone calls coming our way. In fact, I would guess the average person doesn’t keep track of the market throughout the day, unless one of those major business news networks is on at your home. It’s OK if you don’t know that the Dow Jones Industrial Average is up or down at 11:30am. That’s our job. You hired us to keep an eye on the market news, the day-to-day fluctuations, knowing your needs and goals, and developing a portfolio that fits what you are trying to accomplish. Sure, that portfolio will fluctuate based on what these investments do every day, but we don’t plan for the day-to-day, we plan for your future.

With that being said, there is nothing wrong with watching CNBC, or CNN or Fox Business News. It can be quite interesting to listen to the different pundits and hear their points of views. It is just important to recognize that these TV networks are going to produce a program that keeps you engaged so that you stay tuned and they make money on the ads they sell during commercial breaks. You both have the same goals – making money – theirs is just for different reasons and motivations. So what keeps you engaged? Fear and Greed – and thus they ask what kind of day is today.

My brother, Erik, watches these programs all the time. Then, he will call me, usually on his commute home, to talk about all the news he heard today. “Did you hear what Cramer said?!” Jim Cramer is one of the talking heads on CNBC. “Can you believe what happened to Disney today?” “What do you think I should buy IBM or Home Depot?” It’s OK, as with you, I enjoy the conversation. I also use it as a time to remind him too, that our focus is not predicting what is going to happen next, but rather to plan for your future.

Any opinions are those of Stacy Caudill and not necessarily those of Raymond James. Past performance may not be indicative of future results.