The Truth About Financial Advice: Can You Trust Experts On TV?

Yahoo's Jeff Macke reveals shocking secrets of financial pundits in his new book "Clash of The Financial Pundits."
6:49 | 06/03/14

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Transcript for The Truth About Financial Advice: Can You Trust Experts On TV?
-- -- -- who are getting back in the market after the Great Recession. There is a lot of advice on TV it's a lot of noise actually online. But the question is -- can you trust what you hear how what are the tips from all those pundits and experts well there's a new book clash of the financial pundits. It is tackling that very subject and it reveals some shocking secrets of financial pundits. I want to bring in the author Jeff MacKey is host of break out on Yahoo! finance and he wrote the book. Based on his experience as a financial pundit on CNBC back then that's when -- cross have it's great to have you with us Jeff. It's nice to see you're back you're looking very very -- very yoga like I -- that if you I don't there's -- -- day in your life where you've been Jeff. Now I'm not a particularly zen guy -- the -- on this financial stuff. People will spend more time Google and -- -- means that may well picking a stock based on what some Dieter TV is saying when there's a bull market began a little -- -- their research -- -- that this statistic you can market up this. And that's really kind of a message in the book is it's a behind the scenes look. At what the financial -- -- industry is it's a business and it's not necessarily aligned with making the folks at home money that doesn't make it evil does make the information bad. It just means folks have to go -- know how to use and we told the story. -- the coauthor Josh Brown. About it kind of how financial -- came to be about the industry as a whole in the entertainment aspect -- people pick their own stock to manage the money. Jeff not just saying this because your guests and you're an old friend of -- -- your genuinely a really Smart Smart. Well researched -- Why does super good point I don't examine capturing a -- of all things in the world because you could write about a lot of things why choose this particular topic. -- I think and it's the importance of the industry -- see I've run money professionally run for myself run for other people. And I see people and just throwing away assets that they don't need to. I think that Dave -- been sold kind of a -- In the sense that managing money is not something necessarily that you should be doing at home you can't be. On a competitive basis you have to understand -- because your financial future depends on her back and and. We -- you would I have both seen we re both have a roots and financial television. We've seen people take this otherwise incredibly useful tool this this ability to get information that was was held secret for so long. And they misuse it -- abuse -- -- given to their base gambling instincts and made they've really makes financial Dan Donovan I think this is a way to help people. And it's something that -- it's a bit of a personal journey for myself and it's something that -- I hope we can help people. Both improve themselves kind of in a spiritual yoga like way and also financially. What is the reason why I think actually you know you look it where investment has -- So much before the Great Recession most people were in the market now only half of Americans have their money in the stock market. You you mention getting burned but there's also this sense of the game is raped. The game is rigged and it's always been raped say they've stock murder we'll turn to 125 years old this year. It's been rigged from inception to people who have more information and to try to balance -- also understand that. That doesn't necessarily make it evil it just means that people who have more information are going to be making the most money it's a full time job to be an investor. And -- had to stay out of those penny stocks to stay out of the three card Monte type of ideas. And to -- rates -- if -- -- paraphrase Jim Cramer is an excellent interview in the book. It it's it's a process that it's a learning experience rather -- -- just as game that people should be playing in and trading and whipping around their stocks at home. And I really think that it needs to be exposed so people can understand it more it's not a scary once you actually get into it. But the idea that that market is raid is neither news nor something that should prevent you from getting involved. So what do you think what's the first thing for somebody who was hearing this for the first time for new (%expletive) What's the first thing they should do to create a better. Planned for themselves financially. Well I think. They should first of all if they're doing it -- -- for end of my advice is always see a professional NC financial advisor and and understand that industry but if you're just someone who watches this stuff at home. It's you can't do enough research you can't possibly watch this. And and learn enough about the companies involved it's a starting point we hear some guy like music the -- I love Apple Stock and -- long Apple Stock I think it's going higher. That's not me telling you to buy it I'm not making a -- mind trick for you to go out and click your computer and buy stock. What I'm doing is giving an idea. And from very you go on and you recognize that this is your personal portfolios -- your trying to build over time you understand the industry. You understand profit margins you get to know. How business and industry works rather than just making these blind bats based on tips tips -- for waiters always stick your waiter and never -- stock tips there's -- -- -- should just keep in mind. Part of the book Jeff also part of your spiritual journey the comeback for you personally. Idea that's been got a good strains roe -- hot it kind of edge it's -- we've known did you ever added I think 18100 years or so given I think. You know -- -- -- meltdown is showing right now by the way real. -- there you go that's that's a little slice -- know it adds. It's a little bit about just kind of going on with your life and and -- you have. Been up and down and and really rebuild myself over the last few years stripping away a lot of things I thought I had associated with the success over time. It really isn't about that I've had toys about houses those things are not really where you need to be money doesn't buy you happiness but money is fantastic have it's the toys that get in trouble Rebecca. And I think this spiritual journey to people around you and as recognizing that. Every -- a chance to sort of advance yourself collect herself and and hopefully. -- and happiness in something other than the idea of getting a new car that's shaped you know that giant phallic symbol type of representation of your net worth in yourself. And go inside and understand yourself as a human being and it's been something that or the last 56 years. Israeli it's been somebody wanted to share with folks out there just who maybe have are their right now -- are on their own journey. And face and -- and in a position and never really thought they'd find themselves. Jeff really glad you were able to join us today -- share some of that journey the book clash of the financial pundits available now for sale Jeff. We really appreciate it and -- you for sharing the journey with us also wishing you all the best on the journey. Not a mistake novice day baby. Say you for joining us burial is we want to hear from you are you look fan of -- not. And what's your favorite yoga studio between is that real -- with RJ until next time. This is Rebecca Jarvis for --

This transcript has been automatically generated and may not be 100% accurate.

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