Why You Won’t See Bright Sky Group on CNBC

Long-term, disciplined investment principles are too dull for major media

When Bright Sky Group launched a couple years ago, we engaged a public relations firm to explore our options for spreading the word about the financial planning and wealth management principles that our member firms employ. After many inquiries and discussions with the financial media, we came to realize there was just no real media appetite for the kind of information and insight we could provide.

We thought a nationwide alliance of independent advisors banding together to advocate for principles based on decades of academic research – such as utilizing asset class investing instead of trying to pick the next hot stock – would be newsworthy. But it turns out that that the popular financial media want just the opposite.

Outlets like CNBC, Forbes, Fortune and many others heavily favor analysis of quarterly corporate profits, commentary on the market impact of political and economic news, and minute-by-minute coverage of stocks, currencies and commodities. Bright Sky principles like disciplined asset allocation, diversification, and buy-hold-rebalance apparently lack the dramatic appeal of short-term stock and sector picks.

Investing as sport

Unfortunately, popular media is dominated by the kind of coverage that we feel is least appropriate for individual investors – stories about how to “play” the latest corporate news, economic statistics, or White House announcement. These urgent what-to-buy stories may be interesting and entertaining, but we feel they can distract readers and viewers from key fundamental principles and lead to frequent trades in search of the next big breakout stock.

For better or worse (we think worse), the financial media mimic sports coverage – striving to be the first to name today’s winners and losers and predict tomorrow’s, supported with elaborate explanations why. Financial topics that lack the action or controversy of big league sports rarely make it to print or screen.

The Bright Sky Group model of education, planning and discipline doesn’t fit the sports reporting paradigm.

Predictions prevail

While we encountered essentially no media interest in our story, here are a few headlines that did make it to popular web sites in the first few days of August 2011:

  • Five Winners of the Debt Ceiling Crisis (Fortune)
  • When Your Stock Soars, Buy More (SmartMoney)
  • Cisco May Boost Its Dividend, But Should You Buy the Stock? (Forbes)
  • Bear Market Starting, Stocks Vulnerable (CNBC)
  • 3 Stocks Prospering from Housing Rally (SmartMoney)
  • Top 10 Picks for Value Hunters (CNBC)
  • UK Stocks Fall as US Manufacturing Slows (Bloomberg)

No matter how well these stories may be reported, we see these subjects as better suited to short-term traders, not families investing for financial security and retirement. By the same token, a loyal CNBC viewer might pick up 50 or 60 investment tips from hosts and guests each day, almost all focused on what to buy or sell right now rather than on fundamental principles of sound investing. How are individual investors supposed to sort out 300 such tips a week?

Wrong questions

Of course you’re not likely to see a Bright Sky Group member interviewed on CNBC. We don’t have answers for the kinds of questions they ask: How would you play today’s unemployment number? Where’s the Dow go from here? Would you be putting your money in China or Brazil at this point?

Our response to all of these questions would likely be: “In general, we do not recommend moving money in or out any specific security based on anything happening in the news. We focus on helping our clients design portfolio asset allocations that suit their tolerance for risk and their long-term financial needs.” That’s not an answer that gets you invited back as a guest host!

We’ve learned a lot about the media since launching Bright Sky Group, and accept that we’ll not get much help from the major outlets in spreading the word about the fundamental principles we share. So we’ll just keep doing it one client at a time.





© 2011 Bright Sky Group, LLC. All rights reserved.

Bright Sky Group, LLC is not a registered investment adviser. The views expressed by Bright Sky Group represent the opinions of members of Bright Sky Group, but should not be construed as financial or investment advice. Further, the views are subject to change and are not intended as a forecast or guarantee of future results. The material provided by Bright Sky Group is for informational purposes only. Statements of future expectations, estimates or projections, and other forward looking statements are based on available information deemed reliable, but the accuracy of such information cannot be guaranteed. Statements are based on assumptions that may involve known and unknown risks and uncertainties. Past performance is not indicative of future results.

Bright Sky Group member firms are each registered investment advisers, which are owned and operated independently from each other. Bright Sky Group provides general financial information. The services, securities and financial instruments described by Bright Sky Group may not be available to or suitable for you, and not all strategies are appropriate at all times. The value and income of any of the securities or financial instruments mentioned herein can fall as well as rise, and an investor may get back less than he or she invested. Foreign-currency denominated securities and financial instruments are subject to fluctuations in exchange rates that could have a positive or adverse affect on the value, price or income of such securities and financial instruments. Independent advice should be sought for an investor’s specific needs.