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|Subject: Re: Mandelbrot & Taleb on News Hour||Date: 10/22/2008 3:26 PM|
|Author: elan19||Number: 35079 of 41355|
General press coverage of the stock market is almost always terrible and just adds to the extremes of optimism and pessimism. I actually have a lot of respect for Taleb and what he does but why wasn't he getting more interviews two years ago, when the stock market was hitting new highs monthly and volatility was at an all time low? Here's my take on the press:
When stock market is way down:
The press starts writing about or interviewing those who currently have a bearish view far more often than those with a bullish view.
The press places a much higher emphasis on the bad news rather than the good news (How many articles have you seen lately talking about the rapidly improving trade deficit? Now think back to how many you saw about the rapidly deteriorating trade deficit back in 2003).
Worst of all, the press (and I most assuredly include things like Marketwatch with the "press") invents all sorts of reasons for why the stock market is down in the last hour, or last day, or last week.
When the stock market is way up and has been up several years in a row:
The press starts writing about or interviewing those who currently have a bullish view far more often than those with a bearish view.
The press places a much higher emphasis on