Friday, August 7, 2009

CNBC's Ratings Take the Proverbial Cliff Dive

I said after the Nasdaq/Tech crash in 2000 that, ultimately, the Bear market this country is heading into will not be over and a true bottom established until the Dow was somewhere between 2000 and 3000 and CNBC was off the air. I don't know about the ultimate fulfillment level of my Dow target, but it looks like CNBC is rapidly losing viewership:

Assuming the Dow/gold relationship reverts to its occassional and gold bull market ending ratio of 1, gold is headed to at least $2000-3000/oz. before the gold bull ends...


  1. Another great set of posts today. This site has become a daliy stop for me, thanks for the information!

    On a gold related note, I found this story a great take on gold and the banking system:

  2. Hey gyc: thanks for posting that article. I usually surf ritholtz's site but missed that one.

    Please post anything you find that you think would be of interest. I may take that article and expound upon it on my blog this weekend - there's several different ways of backing into a $5000-6000k price of gold. Had not seen that one yet.

  3. I would agree with Zerohedge. they need to report news objectively.

  4. @Mis: part of it is about how skewed their reporting is. part of it is that i think people have figured out that the anchors are borderline morons (Liesman doesn't even have a degree in Economics). but the biggest part of it is that the individual trader is disappearing. we saw that with Schwab's numbers last week and with the fact that program trading and high frequency trading make up something like 80% of the volumn now. in other words, a large portion of former "small traders" have lost complete interest in the market. i also think a large part of their audience was retired males sitting at home watching CNBC during the bull market thinking they were getting educated. i think a lot of those folks have lost complete interest in the stock market.

  5. DiD, that is definitely it. CNBC is more entertaintment than it is news. Sadly, Bloomberg--although its much better--seems to be heading down a similar path.

    Most of the good news has made its way online. Sites like ZH, calculated risk, and credit writedowns have great information that would not otherwise be reported much on the news. And having it online is much more accessible.

    But your right, most of the individual traders have lost interest in the market as a result of hi-frequency trading. We'll see how government handles the directedge flash order business.

    I look forward to seeing your posts.