Tuesday, March 30, 2010

Financial Interviewee Schizophrenia (FIS)

Do you watch BNN, CNBC or Bloomberg financial channels?  Do the folks they interview make you feel schizophrenic because one guy says all is well, the market is going up - and the next gal says watch out, we're headed lower?  My solution to FIS is this: ask yourself who the interviewee works for.  Is he/she an independent newsletter writer/blogger/think tanker/economist?  Or is he/she a representative of an investment house/government/broker/company/bank/etc.?  This "vested interest" approach should be applied to any and all financial predictions.  Of course, everyone works for someone, so you may have to dig deeper to establish their paymaster but that's why we love this stuff, right?  (With apologies to the Federation International du Ski - the real FIS.)