This morning, on CNBC, Erin Burnett observed that the US equity markets posted nearly the smallest gains among the world's exchanges.
For example, she cited India's and Vietnam's markets as rising significantly more than that of the US, with Vietnam's up something like 45%.
Let's get something clear. All markets are not equal. For instance, Burnett doesn't mention liquidity, depth, trading expenses, or listing requirements. Little details, you know?
I find that this sort of 'shoot from the hip,' unconditioned observation, passing as analysis, is all too common on the network. Exactly who did this story help?
Institutional investors presumably already know about various international equity markets and their risks. Retail investors are typically advised to participate in markets via country-oriented mutual funds. Even there, reporting on this year's gains doesn't say anything about next year's. While this is always true, I would think it's especially true in thinner, less-well capitalized and transparent markets like those of third-world countries.
Once again, the network seems to deliver more on entertainment and less on hard, analytical business or markets news and analysis.
Investor beware, alright. Beware of the 'advice' you hear on CNBC.
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