Teresa Lo has an interesting post (I found via WSJ Marketbeat) that questions whether bloggers are causing harm to the people that read them. She notes that some "top bloggers" have bad results and do more writing than trading. She kind of makes fun of the Wallstrip project, which I am participating in, at least I think she is making fun of that project.
I am not sure if she is lumping me into this description or not, I don't think too many people would think of this site as a trading blog per se and really I have no way of knowing if she has ever heard of this blog let alone included it in her thought process for this post. Either way I think it is all fair game. Anyone putting their opinion out there is going to be wrong some portion of the time and is subject to criticism.
One thing about blogs is that obviously there are no barriers to entry. This is something I have tried to point out before and tried to stress that you take little bits of process from various sources and create your own way of doing things. My approach to portfolio construction and management is right for me not other people. It is reasonable that one or two things I may do could fit in to your process as other little nuggets from other investors (or bloggers, or sell side strategists, or mutual fund managers) could also fit into your process.
One thing I would add to Teresa's post would be that I don't think bloggers have the market cornered on bad advice and being wrong. There are plenty of professionals that also get a lot of calls (broad and narrow) wrong. Here again you may be better off just listening to process as opposed to running out and buying XYZ because someone smart said to buy it.
I think type of introspection raised by Teresa's article is very constructive. I try to objectively talk about my successes and let downs here in an effort to get better at what I do, perhaps you could find value in this for your own portfolio too.
Wikinvest Wire
9 comments:
I would credit blogs such as yours an others (bill cara, tim knight, barry ritholtz, Kirk Report) to have contributed more to my understanding of capital markets than most stuff that I read in mainstream. Because of the divergence of opinions among the bloggers and their posters, it forces me to understand the gap and, therefore, the issues contributing to the gap better. It informs my opinion.
mission accomplished, thank you for the kind word.
I don't think so. Whats to criticize yet anyways.
Cramer has proved that pop culture and the stock market mix, all we will do is turn the volume way way down and make people think. Also - great conversation an=bout STRATEGIES.
I would think anyone who likes stocks will be a fan. Dont worry.
haha, actually not worried in the least. among other things my skin is quite thick.
I'm pretty jazzed about getting started.
With the decline of mainstream media and the myriad number of alternative sources for information, alternative financial advice proliferates on the web, especially through blogs. Sure, the BS floweth. However, I think that makes those that wish to learn more astute investors. The variety actually provides a valuable oft-forgotten lesson....don't believe everything you see, hear and read despite the so-called credentials of the presenter. Roger's approach has created a blog that I have found to be informative, enjoyable and comfortable to read, with frequent bits of good information that I am comfortable sharing with others and using myself.
Now my blog is the kind of blog that will harm you. Nothing to learn but hopefully fun to read. Not every blog has to make you a better person or a better trader. As long as you take the info with a grain of salt you actually might learn something or in the case of my site leave with an occassional smile or just shaking your head. Your site, trader mike, howard's, they are informative. I am a better host that a panelist.
No, Teresa Lo is correct. Bloggers are a blight on the control of information, debate and opinion.
Wouldn't it be so much better if investors only got their information from offically sanctioned sources? You know, government sources, CEOs and of course, Wall Street.
The Blogosphere is so messy. Give nme the good old fashioned Corporate PR release anyday.
All hail Teresa Lo! And all hail Oceania!
What do you mean you don't give specific advice?
I bought part-shares in an Icelandic vodka bar and I am making a MINT! Boy those people can drink!
I haven't figured out the hidden investment advice within your canyon jaunt yet- but I am still working on it.
Russell
Lo is right. Most bloggers are disgraceful investors and traders. If someone was good why on earth would they write about it for free. The good are getting smart and getting off blogs. The free ride is over.
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