There is only one thing 300+ million Americans have in common. Do you know what that one thing is?
The latest I have read. Is that tax rates must go up. For various reasons. Major deficits…massive amount of people on the government rolls, like disability, food stamps, housing assistance…etc…etc. This the reasoning goes this will only be fixed by raising tax rates.
These predictors want you to use their vision of the future and buy life insurance, annuities or whatever.
What they neglect to tell you is that it has been proven. When you raise tax rates, tax revenues do down. And when you lower tax rates, tax revenues go up.
This has proven to be the case time after time.
Many predictions have an ulterior motive. ‘This will happen so you must buy this other thing.’
In the case of brokerage firms. They want you trading from one hot thing to the next. Keep in mind these firms make money every time you trade.
It is the fact that no one can consistently predict the future.
Some may get lucky every once in a while. But no one can consistently predict what will happen next.
As people we all want to know what will happen in the future so we can prepare. The financial institutions rely on this and market it.
When one of a banks or brokerage firm analysts’ recommend the right stocks or pick the top or bottom of the stock market. Or an insurance company says get out of the market all together at the right time.
The financial institution will market that fact. This is why they have hundreds of analysts on staff. They know or hope one or two will get hot.
Unfortunately for investors there is no way to predict who will be the next ‘hot’ analyst or fund manager.
I know that free markets work and the stock market will recover…ok..ok it sounds like a prediction. However I do not know which sectors will do well or when there is a top or bottom.
To succeed in reaching your long term goals you must own equities….globally diversify….rebalance.