No one in the financial instituions wants investors to realize that they CANNOT stock pick or market time with any consistency. NO ONE CAN. Investors would be better served with a prudent portfolio and the discipline to stay the course.
Most members of the securities industry are not criminals — at least not the kind defined in the penal code. They are far more dangerous. They claim to have “expertise” in stock picking, market timing, manager picking or the ability to put you in investments with big returns and modest risk. Most investors believe them.Sound familiar? If so, you can learn a lot from the literature on battered woman syndrome. Studies show the longer the women stay in the relationship, the more likely they are to be seriously injured.
The lesson for investors is clear. Your “market beating” broker or advisor can’t hurt you if you end the relationship.
Any stockbroker, adviser, insurance agent who claims they can ‘beat’ the market is selling performance not a prudent investment strategy. They offer anecdotal evidence of past successes. These results are a matter of luck and NOT skill and do not repeat.
Please comment of call to discuss how this affects you and your investment portfolio.