The Wall Street bullies continue to fool the investing public. Many investors continue to believe that someone on Wall Street can predict the future. Unfortunately, there is no one who can consistently forecast the next great investments. Your best strategy is to find a prudent strategy and remain disciplined to that strategy.
The daily grist of these shows consists of commentary by smug, highly confident, financial journalists and their guests, who manage money. They regale us with their views, not just on what is happening in the market, but what is likely to happen. The stock picks of the fund managers have the same possibility of being correct as calling a coin flip. Their real agenda is to convince you to invest your money with them.If the premise of these shows is to get you to trade, by “fleeing to safety” in volatile markets,” and trying to figure out when to return to stocks to capture the next bull market, it is working well for them, but not for you. According to Forbes magazine, a majority of investors “consistently buy high and sell low” — the exact opposite of profitable investing. While you end up holding the bag, Wall Street continues to profit.
You can patiently search the networks and hundreds of cable channels in vain for a responsible financial talk show that is premised on solid, peer-reviewed, academically based, information, geared to assist you in reaping market returns that are yours for the asking.
The information withheld from you is vast. It is set forth in my books, and in books authored by Burton Malkiel, William Bernstein, John Bogle, David Swensen, Jason Zweig, Mark Hebner and many others. Trillions of dollars of really smart money is invested based on the research set forth in these books. If you are like the majority of individual investors, you are clueless. You continue to try to time the market, pick individual stocks or hot fund managers, or purchase variable annuities because you are told they are the “best of both worlds” (protection of capital and participation in upside market potential.).
The Wall Street bullies do not want you to know any of this. It is a prudent strategy backed by scientific, academic research. You can reduce the anxiety you feel investing the way Wall Street wants you to invest. Most investors do not even come close to matching the returns the market provides.
Please comment or call to discuss how this affects you and your financial goals.