Are financial talk shows good for advice?
Tommy Williams  Im frequently asked what financial television programs I watch in order to get good investment advice. Im going to answer that with a story about my experience(s) in 2008/2009. During the Great Recession I did 59 interviews in 18 months on national television. CNBC, Fox Business, CNN, Fox News to name the primary outlets. You may recall that the near collapse of the economy was created by the large investment banks and their use of sliced and diced subprime home mortgages. One result was an overwhelming sentiment of Wall Street vs. Main Street. To represent the masses whose money was at risk media outlets were looking for a poster boy who had experience in front of a camera (thank you Channels 3 & 12 in Shreveport) and did not sound like he was from Manhattan (thank you Queensborough and Fair Park High School). Once the producers of the news outlets discover you, they will run you ragged. Theyve got 24 hours of news cycle to fill. One day I was in San Diego at a huge Financial Advisors conference. About 10 AM, Erin Burnetts producer (of CNBC at that time) found out that some important guest for 2 PM that afternoon had a conflict. In a panic they went down the list for a fill-in. My cell phone rang. Of course, I was available. Great! There was a large exhibit hall full of world class research firms in the San Diego Convention Center  and Ive got about 4 hours to learn something about the topic and locate a satellite link to go on the air. Within a couple of hours, I was loaded with sound bites on the topic and in a cab headed to a studio. All is well. At precisely 2 PM I heard Erin Burnetts producer do a sound check  and then she opened her show. Then it happened. Im not sure what became of the topic discussed earlier, but she called my name first (I think there were 2 other guests located somewhere else in the world) and asked me Tommy, given the current economic climate, what sectors are you recommending to your clients? Now I never think in sectors. Im more prone to think of opportunities that are safe and pay income or perhaps more aggressive and offer prospects for growth. Im live on TV in countless nations. God smiled on me. The previous day I had heard a fascinating economist proclaim that the number one selling retail item in the first 6 months of 2009 had been mens underwear! Two billion dollars worth! In a panic, I calmly stated that I favored the Consumer Discretionary sector for client portfolios  you know, all that underwear and all. Erin snapped Let me correct you Tommy, mens underwear is in the Consumer Staples sector, not Consumer Discretionary. Before my mind engaged, I replied, Erin, that may be true in New York, but in Louisiana it is discretionary. It was one of those moments. The roar of laughter in my ear was from the camera men in the New York studio. The hick from Louisiana has a quick sense of humor. They never even went to the other guests as the segment digressed into about 5 minutes of laughter. My favor at CNBC  and other stations was cemented, and I became such a regular guest on various programs  and Reuters, the Associated Press, Wall Street Journal, New York Times, etc. It was exhausting. It was an interesting time, but there is a moral to this rambling story: Though you might get some ideas from financial talk shows, please dont ever forget  they are designed to sell advertising. Entertainment keeps viewers. They are NOT designed to give investment advice. I have countless stories which prove this truth, but you get the point. Stay close to a Trusted Advisor who knows you, your objectives, risk tolerance, etc. and develops a sound long-term symbiotic relationship based on good fundamental research. However, I also think you should never miss a good laugh  and perhaps some of the financial shows will provide that for you. Thats real value! The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. Investing involves risk including loss of principal. RFG Advisory and its Investment Advisor Representatives do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. Please consult your own tax, legal, and accounting professional for guidance on such matters. Visit us at www.williamsfa.com. Tommy Williams is a CERTIFIED FINANCIAL PLANNER Professional with Williams Financial Advisors, LLC. Securities offered by Registered Representatives through Private Client Services, member FINRA/SIPC. Advisory products and services offered by Investment Advisory Representatives through RFG Advisory, a Registered Investment Advisor. RFG Advisory, Williams Financial Advisors, LLC and Private Client Services are unaffiliated entities. Branch office is located at 6425 Youree Drive, Suite 180, Shreveport, LA 71105.