In the past, writers who discussed stocks and other financial instruments would disclose any and all of their and their employer's interests in those instruments.   That way their readers would know if the writer might stand to gain from their reporting.  Today, writers almost never reveal their or their employer's positions when blogging or reporting on stocks.  I think this issue needs to be addressed. Here are some examples of why it's so important for a writer to disclose their positions.  If I wrote a blog and said "everyone should buy Apple (APPL) stock because I have analyzed x, y and z and it's going to explode!," I would also need to tell people that I owned APPL stock.  That way, readers would know that I would stand to gain from any increase in the stock's price as a result of my article.  Knowing this might help the reader to make better decisions on what actions they might want to take after reading the article. It's also important for a writer to reveal that they do NOT own a stock that they mention in their writing.  For example, if I said "whoa, Alibaba (BABA) is about to tank today" and revealed that I didn't own any shares or interests in that stock, then you would be more likely to consider whether or not I might have written that article to get shares to drop temporarily (as history has shown they would often do) so that I could buy into those shares for a profit of my own. On the other hand, in the above example, if I disclosed that I DO own shares or interests in BABA, it would be less likely that my opinions or reporting would lead to my personal gain.  Of course, assuming that the writer is being honest about their positions in all of the above cases. I would recommend that all writers include whether or not they or their employer's hold positions in any of the stocks or funds they mention in their writing.  It will give you more credibility and increase your value as a writer and reporter.  That is good for you, and it is good for your readers who will trust your reporting more and keep coming back to you for information. What do you think?  Let me know in the comments section.   … [Read more...]