They're being mostly made in the media, on TV. TV networks seem to be pushing the "help america, buy/don't sell stocks". now personally i think it's kind of irresponsible. Trader audience here is the people I'm least worried in this regard but the average TV viewer in this country does not even know what to sell short is. The calls may be very dangerously interpreted by the general public. Extreme case would be someone deciding to "help" airlines by their stock today. People's equity holding are in serious danger now in face of a possible severe and PROLONGED downturn. To tell them to hold on no matter what and even buy more is not right, I think. Perhaps telling people to keep off shorting would be more reasonable but then the American public at large does not short, so. People should be protecting their equity holdings as aggressively as ever now. The action is controlled by institutions who I think and hope are selling. The Europeans won't hold on, the Japanese won't. The list of reasons why these calls are not a good idea goes on and on. The reason I think and hope that instituions are managing their equity holding proactively right now is I would hate to see the multi-billion positions of American pension funds, mutuals etc. hopelessly deteriorate and hit hard the wealth of the average American who is invested in those funds. It is every pro manager's responsibility to investors to be very aggressive in managing their holdings during this period.
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Regarding Calls For Patriotical Stock Buying/Not selling
- Thread starter traderkay
- Start date
Since you touched on a very sensetive area, I'd like to share with you the following email Tony Oz has sent CNBC and forwaded to me.
I asked Tony if I could post his email and he gave me permission to do so.
Bill
Hi Bill,
The following is an email I sent CNBC today. I hope it makes a difference.
Trade Smart!
Tony
----- Original Message -----
From: Tony Oz
To: PowerLunch@CNBC.com ; StreetSigns@CNBC.com ; MarketWrap@CNBC.com ; MarketWatch@CNBC.com
Sent: Monday, September 17, 2001 8:55 AM
Subject: Buying stocks and Patriotism
Dear CNBC,
Unfortunately, we as a nation suffered the greatest loss in our history to terrorist acts last week. My prayers go out to all who have been affected by this tragedy, and I wish that we never have to face terror ever again.
As a result of the terrorist acts, we all have suffered losses in various degrees. We are all directly affected by this tragedy and will be affected in the future. I have a friend in NYC who is not accounted for, and I was in the air at the time of the attack. My plane was diverted to Honolulu while on the way to LAX from Japan. I can't stress enough how fortunate I feel to be alive and finally with my family in Laguna Beach, CA.
The reason I am writing you this letter is because I am very concerned about the message that the media is sending out to the investing public. I completely understand the urgency not to panic the public, but at the same time I feel that the public is being deceived. I keep hearing guests on your show encouraging patriot Americans to support the economy and buy stocks. Unfortunately, this is a bunch of bull! Buying stocks does not support the economy! Buying stocks simply provides liquidity to the one who wants to sell. If you want to support the economy, you should spend money and not put money away!
Promises of long term come-back and price targets on the S&P 500 is no different than Henry Blodget and Mary Meeker recommending the now-bankrupt, or close to it, Internet stocks. There is no telling what will happen in the future, but we must not forget that the fundamentals for many of the stocks were not very promising prior to the attack. The big thing that has to be cleared out of the way is not only the no-visibility, but also the earnings pre-announcements that will start coming in next week.
In short, losing money because of deception is not patriotic. It is simply stupid! I have not heard one guest on your show say that.
As a professional, I am sitting on the sidelines waiting for more information to make educated investment decisions. My recommendation to the public is to do the same.
If you wish to conduct a phone interview with me please feel free to email me.
Thank you for taking the time to read this letter,
Sincerely,
Tony Oz
Author of the books:
Stock Trading Wizard
Building Blocks for Successful Trading
The Stock Trader
How to Take Money from Wall Street
I asked Tony if I could post his email and he gave me permission to do so.
Bill
Sniper,
thanks for posting that.. Tony is right on.. alot of people could be hurt by this irresponsible position of CNBC.. in 5 years the major indexes are almost certain to be higher than they are now.. unfortunately, as was pointed out by John Chambers recently, many of the companies that comprise our indexes will not survive over the next few years.. i feel for those who blinded by emotion stepped in front of the screaming train we had today.. i hope CNBC pays attention although i have to admit, i doubt they will adopt a non "politically correct" position..
-qwik
thanks for posting that.. Tony is right on.. alot of people could be hurt by this irresponsible position of CNBC.. in 5 years the major indexes are almost certain to be higher than they are now.. unfortunately, as was pointed out by John Chambers recently, many of the companies that comprise our indexes will not survive over the next few years.. i feel for those who blinded by emotion stepped in front of the screaming train we had today.. i hope CNBC pays attention although i have to admit, i doubt they will adopt a non "politically correct" position..
-qwik
sniper - thanks!
there is a difference and other means to express sympathy, sympathetic association and feelings and identify with those who are suffering, and essentially all the actions that we are calling patriotic fervor.
simply put, we are all humans, and we are all hurting, however, this should not be confused with the operations we conduct with surgeon's scalpels as we trade inbetween the swings.
thanks T. Oz
there is a difference and other means to express sympathy, sympathetic association and feelings and identify with those who are suffering, and essentially all the actions that we are calling patriotic fervor.
simply put, we are all humans, and we are all hurting, however, this should not be confused with the operations we conduct with surgeon's scalpels as we trade inbetween the swings.
thanks T. Oz