Investors have been at the mercy of the media and the Wall Street bullies. This evil partnership has conspired to convince investors that they have their best interest in mind. Nothing could be further from the truth.
Every day investors (gamblers/speculators) watch and read the media looking for clues about the next great investment idea. It might suggest a new trend is emerging. Or this certain industry will produce ‘great’ results. Or the list goes on and on…..
In every case the media and the bullies have the right answer. If investors were to keep these experts accountable for their prediction. They would soon realize that predicting the future is really, hard.
If they actually keep track of these predictions. They would soon stop watching the media outlets. This the media and the bullies cannot have.
Below is an excerpt of a recent Dan Solin post. I find it very revealing. How about you?
Dan Solin’s Newsletter, March 23, 2017
It would be great if the financial media conveyed useful information to investors. If it did, you’d see headlines like these:
- Our advertisers pay us to provide “news” that enriches their bottom line at the expense of yours.
- Our “experts” are no more accurate in their predictions than the flip of a coin.
- It would be more accurate to call “predictions” by our experts “random guesses.”
- We don’t have a clue where the market is headed and neither does anyone else.
- When you trade, it’s likely an institution is on the other side. We don’t like your chances.
- It makes no sense to buy individual stocks.
- Even if it did, we have no way to identify stocks likely to outperform in the future.
- Overweighting your portfolio in gold is dumb, no matter how frightened you are.
- If bouncing in and out of the market made sense, professional managers would not have such a terrible track record.
- You’d be better off not watching or reading us.
Please let me know if you ever see one of these headlines. It would be fiduciary kind if day.