I don’t know about you, but when I was a kid, one of the things my parents used to say to me was, “just because it’s on TV doesn’t mean it’s true.”
That advice is more true today than back when I was a kid. When I was a kid, my parents were commenting on the cartoons I was watching. Today, this advice could be applied to all the financial, stock, and investments “gurus.”
I’m not saying that everything they say isn’t true. And I’m not saying that none of the advice they provide is valuable. What I am saying is that we need to evaluate the advice they provide and determine if it applies to us specifically.
We should never assume that just because someone has a TV show, sells a lot of books, and has a strong opinion about something that they are right.
We need to remember that the advice they are giving is being sent out to millions of people. They are not providing specific advice designed to meet your particular needs.
They are on TV to entertain!
How do you entertain an audience?
- Use Bold Headlines
- Have Sensational Stories
- Provide Extreme Examples
- Have a Strong, Outgoing Personality to Deliver the Content.
In my opinion these “financial gurus” are not on TV to give financial advice. They are on TV to entertain and they use finances as their means to entertain.
How poor is the advice from the media?
In 2000, Case Western Reserve University conducted a study showing that investors who follow media recommendations lose 3.8% of their money in the following six months after the recommendation.
Instead of taking the financial gurus’ advice, I believe we should consider their advice. Consider what they have to say, and then make our decisions based on our specific situation.
And if you do ever need tax or financial advice focused on your specific situation, feel free to contact me anytime.
*Please keep in mind that all the information I post on this site is for general purposes only. I understand that every person’s situation is unique and should be treated as such. If you would like more information about how something listed in any of my posts specifically affects you, please feel free to comment below, email me, or call me anytime.