The Best, Boring Investment Advice You’ll Ever Receive

The Wall Street bullies want you to believe that they can predict the future. They want you to believe they can capture all the great returns and avoid all losses. It is amazing that the public continually fall for this scam. NO ONE can predict the future. You should own equities, globally diversify and rebalance. If you follow this recipe, long term, you will succeed in reaching your long term financial goals.

English: Wall Street sign on Wall Street
English: Wall Street sign on Wall Street (Photo credit: Wikipedia)

It’s unfortunate that most investors succumb to the sales pitch of brokers and advisers who tell them they can “beat the markets.” If your broker falls into this category (and almost all of them do), ask her to describe her methodology. If it is based on past performance, is she able to predict tomorrow’s news? Since tomorrow’s news is what will affect stock and bond prices, why does looking backward have any predictive value?If there was a reliable way to “beat the market,” you can be sure it would be uncovered by the millions of investors and thousands of academics focused on the market every day. It would also be published in a peer-review journal. I have yet to find any credible evidence of investment expertise permitting anyone to consistently “beat the market.”

I issue the same challenge to brokers every day. Tell me your methodology for beating the market. Demonstrate that it works. I will check it out and will publish the results. I am still waiting for takers.

NO one can predict the future, yet most brokers make you believe they can. If you want a main street solution to a Wall Street problem stop listening to brokers and invest in a globally diversified portfolio.

Please comment or call to discuss how this can help take the stress out of investing.

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