The Anti-Marketing Hall of Shame - Market Hype

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Market Hype

If you have ever dabbled or jumped headfirst into the stock market, you have probably been a victim of market hype. This is a manipulative scheme by Wall Street and the mainstream media outlets to cheat you out of your hard-earned savings. Both of these entities profit off of manipulating the public's emotions, creating waves of hysteria, fear, and greed. Unless you are very knowledgeable and experienced in the stock market (AKA the "Ultimate Pyramid Scheme"), a word of advice would be to stay out of it, especially if you have a short-term horizon. Traders and market analysts are looking out for themselves and for their largest institutional clients, and they happen to be market insiders (though legally anointed ones). So where do you think most of their profits come from? If you guessed the individual investor like you and me, you figured it out. And think about this for a moment - those are the same people recommending and/or making your trades. But the public isn't supposed to know that, because then we would pull our money out of the market, and the great pyramid would crumble. So I guess it's better for us to keep those corporations propped up with a portion of our savings. You would think that they could at least say "thank you" now and then.
The seemingly important event "Brokerages Agree to Pay $1.4 Billion Settlement" received very little coverage in the news. In the story, ten of the largest brokerages agree to pay back about 1.00% of what they have stolen from you and I over the past decade. Supposedly, this is the official settlement (or more appropriately, the official slap on the wrist) for creating the stock market "bubble" in the 1990s. The fine was paid to the government. . .
The mainstream media profits from the hysteria, because quite simply, it makes for good news. The more dramatic the tides of the stock market are, the greater the number of eyeballs that will be glued to the TV, online news outlets, and to the advertisements of their sponsors. What is even more irksome is that the media always has a simple explanation of why the market performed as it did for the day, such as "economic indicator #42" or my personal favorite, "taking of profits". Who took those profits? I guess someone savvier than I. But at least we can console ourselves that there is a rational explanation for it all, and we can digest the news in an easy-to-swallow morsel before settling down for some prime time television.

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