If you donâ€™t know any better, an article printed in a well-established financial rag may go unquestioned in your mind. The Wall Street Journal, Economist, Financial Times, and so on may seem above reproach, and the real-time commentary seen on CNBC and BCNN may seem like the best reporting the world has ever seen.
Until you start to think about whatâ€™s being saidâ€¦ and thatâ€™s whereÂ this weekâ€™s newsletter comes into play.
If you follow our blog, you know we tend to slam the financial media quite a bit. It doesnâ€™t help that several of the folks in our office revel in the opportunity for a good debate, but we do try to be selective about the fights we pick. It usually happens when someone says something so factually disconnected from reality that we would feel irresponsible letting the piece go unrefuted, and, truth be told, we could probably get up on our soap box far more often than that.
Let us be clear- we donâ€™t hate everyone in world of financial media. We donâ€™t think all financial press are incompetent. In fact, over the past several weeks, weâ€™ve been pretty impressed with several journalists who have called to inquire about the MF Global scandal, the futures market, and what the whole mess means for investors. We also are not trying to discourage anyone from reading coverage of the markets or investing world; knowledge is power.
That being said, the pursuit of knowledge from the financial media still requires some diligence on the readerâ€™s behalf. Most of the time, mistakes or bias inserted by authors are not intentional (at least, thatâ€™s what one has to hope), but their presence means that investors need to cultivate and filter their media consumption. Doubt what weâ€™re saying? Well, thatâ€™s a step in the right direction. Let us explainâ€¦
Forex trading, commodity trading, managed futures, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors.
The entries on this blog are intended to further subscribers understanding, education, and â€“ at times- enjoyment of the world of alternative investments through managed futures, trading systems, and managed forex.Â Unless distinctly noted otherwise, the data and graphs included herein are intended to be mere examples and exhibits of the topic discussed, are for educational and illustrative purposes only, and do not represent trading in actual accounts.
The mention of asset class performance is based on the noted source index (i.e. Newedge CTA Index, S&P 500 Index, etc.) , and investors should take care to understand that any index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices:Â such as survivorship and self reporting biases, and instant history.
Managed Futures Disclaimer:
Past Performance is Not Necessarily Indicative of Future Results. The regulations of the CFTC require that prospective clients of a managed futures program (CTA) receive a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the clientâ€™s commodity interest trading and that certain risk factors be highlighted. The disclosure document contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA.