I just read a post by Peter Schiff regarding his view of the US economy and how China is going to eat our lunch and Bernanke is either a liar or an idiot or both. Now I’m a glass half full kind of investor, with a firm belief in the US consumer and our ability to bootstrap our way out of almost any economic quandary that we create. So I tend to get a little miffed at guys like Schiff, who are heavily invested in gold and use their platform to promote gold so that the prices keep rising.
The US economy rolls on consumer confidence, and the markets are skittish creatures that stampede on the smallest rumors and innuendos. It’s akin to yelling “Fire!” in a crowded theater and investors who listen to Schiff or men of his ilk will start moving money around the market fairly quickly. This can cause a cascade effect, where other investors smell blood in the water and run like tuna or circle like sharks.
So do commentators have a responsibility to the markets and economy? Can they say whatever they want, even if their opinions are sound, and have been proven true in the past, IF it has an adverse on the market? Is it un-American to disagree with optimists?
Now I advocate controversy in article marketing, it’s a great way to initiate conversations with clients and to attract attention. My first thought is Schiff is trying to generate additional interest in gold so the price will continue to rise and he will make more profit. The cynic in me thinks he’s working to create controversy to draw attention, and then sell his service(s) as an advisor. And the patriot in me thinks that Schiff’s heavy investment in China leads to an anti-American slant in his writings and opinions, and while they may hold some validity, he’s just trying to make money off the American people, just like the other robber barons on Wall Street who manage hedge funds, banks and other businesses that have led us into this economic mess.
So it’s my responsibility to remind you that the economy hinges on faith as much as financial feasibility and it’s an obligation to promote and cheer on the US Economy. For the sake of disclosure, I’m in MSFT, I’m in Disney, I bought Marvel, and just this week, I jumped into Perot, after Dell announced they were going to buy the company. I use the news to guide my portfolio decisions and I invest in the US economy. I’m still recommending MSFT to anyone who will buy it, and think Wal Mart is going to have a great 4Q due to guys like Schiff telling the American consumer that the economy is in the tank. People are going to listen to him and then shop accordingly, which means WMT is going to be in the money for 4Q. Plan your trade accordingly.
The question also becomes, how can you plan your swing trade based on what some talking head says in his column? Especially since the column is widely read, and there is some level of respect for the author, even if you don’t agree with what they say? The Doomsayers and naysayers love to preach doom and gloom, usually in an attempt to make money on a precious metal or another commodity. Learn to read between the lines so that you can make money on good old US company stock.
