However, one would expect that people who are paid to write, prognosticate, and offer their views on the world, the market, the economy, or whatever they're paid to write about would have a good overview on the subject they're writing about. This isn't the case in the following CNBC article:
http://www.cnbc.com/id/39676964'Halo: Reach' Not Enough to Lift Falling Game Sales By: Chris Morris
Software sales at retail stores were down a shocking 6 percent last month to $614 million, according to The NPD Group. That’s vastly worse than analysts were expecting and could scare investors, who were holding out hope that September would be a bright spot in an otherwise dismal year for game sales.
Really? Is 6% really shocking? If you're seriously shocked, I have to color you an amateur hack. This sentence is most vexing however:
"That’s vastly worse than analysts were expecting and could scare investors, who were holding out hope that September would be a bright spot in an otherwise dismal year for game sales."
When I use the words, "vastly worse," I better be talking about a 50% haircut. That's vast. When referencing a 6% drop, I'd use the following two words, "mildly worse." Learn from me. The writer also mentions "scared investors" but my contention is that any investor who bails on the whiff of a 6% miss isn't an investor. He's a day trader scalping a few cents every day in the hopes of coming out ahead. Hope shouldn't be part of any trading strategy anyway. An investor buys into a company because its prospects have potential and a real investor would be adding to his position on weakness, not selling.
I have confidence in the future of the gaming industry. It's not going away and I'm buying on weakness. The day traders can jump around and get knocked out by the volatility but there's a bull market in progress that is going to take everyone (even me) by surprise. I have my index targets for the next 5 years which I won't publish but they're much, much higher than they are now.