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Learn about our thoughts and opinions on the markets and industry overall

What The Wealth

Have you watched that documentary that almost physically forces you to walk to your fridge and rid the machine of all your unhealthy and chronic disease inducing foods?  It’s called “What the Health.”  It covers a myriad of information all suggesting that the major diseases (heart, cancer, diabetes, etc) are too profitable for us to find a cure. 

One major point they make is that the main donors of the non profits who’s mission is to find cures for these various diseases are the same companies that contribute to the disease in the first place.  For example, they illustrate how the poultry industry is a huge supporter of diabetes non profits. 

We’ll let you watch that documentary yourself if you’re interested in forming your own opinion.  We did go to some of the charities we support and checked their donor lists.  There may be some truth to what they are saying regarding the donors.  Pharma companies are major donors to cancer non profits. 

The real question the documentary raises is why aren’t more charities targeting prevention of diseases instead of cures.

So, what does this have to do with financial markets?! 

Financial media outlets (CNBC, Bloomberg News, etc) are viewed by many as the authority on the markets.  Why?  Aren’t they just entertainment?  We read an article recently that made a great point.  When’s the last time you saw any market commentary from the financial news outlets have ANY impact on the markets?  The fact of the matter is that they have no impact.  The professionals have already uncovered opportunities and risks far in advance of the media “breaking news” reports.

We got to thinking back to the What the Health documentary as I’ve watched the “Plunging” and “tanking” headlines permeate the airwaves over the past month.  Who is their largest donors (I mean advertisers)?

Vanguard.  eTrade.  Fidelity. 

What companies make money when Americans listen to the media headline and react to them by making buys/sells?  Vanguard.  eTrade.  Fidelity.

Are the headlines that are made to instill doubt, uncertainty, and irrational choices news?  Or is it entertainment aimed at increasing ratings for the media outlets? 

We’ll let you watch the next episode of your favorite financial media outlet and report back who the main advertisers are? 

Stay informed.  Have a process. Trust your process.  Don’t act on headlines.