Reading the daily newspaper or tuning in to CNBC is sometimes enough to trigger a mild anxiety attack. As The Aleph Blog points out, however, "there are many that cover the markets that try to get you to worry about things that aren’t real problems." Little bugaboos that sound scary on TV may not be so scary after all. Here are a few news items that The Aleph Blog has picked out as causing unnecessary fear, uncertainty and doubt for individual investors:

(1) Rating agency downgrades - "For the most part, market spreads and yields are set independently of debt ratings.  Sophisticated investors dominate the market, not the rating agencies.  As an example, suppose the US were downgraded to Aa1/AA+/AA+.  After a week, I doubt yields would change much at all, because the fundamental view of the US would not be changed by a change in its rating."

(2) High credit spreads - "Those are a reason to be optimistic, because it means pain has been taken already.  Spreads can’t get higher than a certain level, or companies start delevering, because it is profitable to do so.  So when you see spreads near record highs, that is a buying signal, at least for the debt."

(3) Retailers in trouble - "Some retailers are always in trouble during hard economic times.  It’s a tough business model, so expect some defaults; it is normal and healthy for the economy as a whole."

What do you think: What events or trends are overrated as sources of investor anxiety? (And does the mainstream media focus too much on them?)

All bow down to the mighty WALMART Will?...lol

There are always going to be people who know what 'the news' means and those that don't and most people don't. However, it doesn't take long after starting to trade and follow the news to understand the point this post makes.

The long and short of it, pardon the pun, is that the market IS controlled by big investors who know how to wag the dog to their liking. More times than not this has nothing to do with the actually state of a company, an industry or the market in general. If you want to make money in the market, buy low, sell high and leave all the 'stuff' in the middle to the dog waggers.

you must of seen Don Harolds last two videos on youtube dealing with american pie and jim cramers green week picks vs miserable picks up to today. Tech ticker kids are on the hunt for the corporate anarchists with golden parachutes. In the good years seems people can get away with certain practices or investment strategies. When the bubble breaks and they turn to analyz the truth starts coming out and the dupped (institutional investor) turn into marauder seekers to root them out of the capital society.

Interesting links, no picks on this one :)

Where their money is concerned, their will be onlookers. Like Buffet alerts or interviews, its not what he says, but his action in investing, that tells the story.

PEACE