Another Warning about the Mainstream Media
By: Mike Stathis
Dec 26, 2010
As those who have been following me for some time know, I place a big focus on reminding readers about the media. So for those of you who might have recently stumbled upon my articles, I want to warn you about the media because many people have been brainwashed to believe the trash that’s been plastered on TV, the radio and print media. And I will tell you right now that 99% of what you have heard from the media regarding the economy and investment markets (TV, radio, print and Internet) is complete BS.
The simple fact is that the media could care less about supplying its audience with credible and unbiased experts. This is why you see so many extremists claiming hyperinflation is a 100% certainty in the U.S. and other false prophecies. Others claim that the U.S. is already in a deflationary spiral.  
On the other end of the spectrum, you see Washington and Wall Street hacks making claims of a strong recovery and so on. The only thing the media cares about is making money, and it does this by selling ads. If you listen to extremists, whether they are perma-bears or perma-bulls, you stand to lose even more money.
Think about it. While the Wall Street hacks have been wrong about a recovery, the fact is that the stock market is up by a huge amount since they spread the word of a recovery.
In contrast, while the perma-bear crowd has a better grasp of the economic reality, the fact is that this crew kept their audience out of the great stock market rally since the Great Depression.
So what can we conclude?
First, you need to understand that both camps are filled with extremists. And you will never make money over the long run if you listen to extremists.
Second, you need to understand the economic reality. But you also need to understand where the stock market is headed. Knowing the risks to the economy won’t necessarily tell you where the stock market is headed. It will only help you with downside risk. But if you focus on doom and gloom all the time you will miss out of huge gains.
In short, you must be able to know when and what to take from the perma-bulls and perma-bears, but you should never side with either camp indefinitely.