Why watching CNBC could destroy your life

It's August 2007. The Dow Jones Industrial Average sits at the 13,000 mark.

What did CNBC's talking heads recommend?

Ned Riley - says he's retired, living off of his portfolio and is 75% to 80% invested in stocks. Claims the U.S. market and even banks stocks are "attractively priced" and will generate 9 to 11% annually for the next ten or fifteen years. Grade: F-. Had you followed Riley's lead, you would have been completely wiped out.

Vern Haden - hard to pin down because he spews the usual platitudes, but basically posits that investors should stay the course. Grade D.

Peter Schiff - called the credit market meltdown perfectly, but whiffed on commodities, interest rates and the dollar. His call on gold was spot on ("spot on" -- get it?). Grade C+.

Lesson learned: the advice from CNBC's talking heads appears to be considerably worse than using darts to select stocks.


Hat tip: Market Oracle.