On July 5, 2008, CNBC Management announced a change in their evening schedule:
- They replaced the daily 8 pm telecast of CNBC’s Fast Money, an aggressive risk-oriented trading show with a conservative personal finance show that preaches avoidance of risk.
“It is a tenet of investing that the Business Press usually provides a reliable contrarian signal” – we wrote in our original article on this topic – “Did CNBC Management give us a Market Signal?” – July 19, 2008.
In that article, we asked “Will CNBC’s decision to promote lower risk on its network prove to be a contrarian signal for investors to add more risk to their investing approach? Only Time will tell!”
This being our blog’s original and proprietary market indicator, we intend to follow it and publish regular updates. Let us call it the CinemaRasik-CNBC Indicator or CR-CNBC Indicator in short.
In fact, we will track it in 2 ways:
- As of the date of CNBC’s decision (i.e. July 5, 2008) – the CR-CNBC-5 Indicator and
- As of the date we published the indicator (i.e., July 19, 2008) – the CR-CNBC-19 Indicator.
Below is the performance of the CR-CNBC-5 Indicator after one month:
|Index Name ||Price – 7/5/2008||Price – 8/4/2008||Gain-Loss|
| Dow Jones||11288.53||11284.15||0.0%|
| S&P 500||1262.90||1249.01||-1.1%|
| Russell 2000||665.78||704.14||+5.8%|
Below is the performance of the CR-CNBC-19 Indicator after one month:
| Index Name||Price – 7/19/2008||Price – 8/18/2008||Gain-Loss|
| Dow Jones||11496.57||11659.90||+1.4%|
| S&P 500||1260.68||1298.20||+3.0%|
| Russell 2000||693.08||753.57||+8.7%|
Well! CNBC Management did prove to be a reliable contrarian indicator.
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