In most industries, you can generally rely on a legitimate professional’s opinion for guidance. But the investment industry — or more specifically, the investment PREDICTION industry — is an altogether different animal. That seems counterintuitive, doesn’t it? It sure feels like that trade would be filled with legitimate pros whose advice you could literally take to the bank. After all, we’re inundated with supposed experts each day on television, in podcasts, and in the newspapers, providing their takes on the financial road just ahead.
They must know something we don’t and are standing by, ready to alert us to the dangers — or financial renaissance — that may be just around the corner, right? Wrong!
Financial media is a BUSINESS. Those personalities on business-centric outlets like MSNBC or the Wall Street Journal aren’t plying their trade out of benevolence or a sense of service. They’re on the air to generate ratings — ratings that translate into advertising dollars.
There’s just one problem, and it’s a big one. These financial pundits are wrong much more often than you might think. In fact, there’s really no reliable evidence that anyone — regardless of their experience or education — can effectively predict the short-term direction of the stock markets. And, if you hitch your investment wagon to these predictions, it can do some serious harm to your financial future.
That sounds a little disconcerting, but it’s true. Want proof? We’ve got it in the newest episode of A Place of Possibility™.
We’ll be talking about:
- How the investment prediction industry uses sensationalistic headlines, accompanied by evocative imagery, to prey upon your intrinsic human need to want to avoid pain.
- One particular financial pundit — a household name — who is usually so off the mark with his predictions that evidence suggests you’d be better served doing the exact opposite of his recommendations.
- An ever-present faction of the investment prediction industry that’s always ready to stoke fear in our hearts and how they do it.
- The real key to successful investing that will prepare you for those tumultuous events that will always crop up to disrupt the financial markets in the short term.
We know, we know! It’s hard to turn off the tv and put the remote down, but we promise that once you do, your financial and mental health will be much better off! And if you know someone else who may be struggling with turning off the financial white noise, please share this episode with them.
P.S. Looking to meet with Richard or Angela at our office in Alamo, CA? Want to discuss more of what you heard in this episode? Wondering where the heck you need to get started or what all of this means for your retirement plans? Schedule a free 30-minute session and find the peace of mind you deserve for the rest of your life. You can also reach us by calling 925.736.6410 or sending an email to Info@APlaceOfPossibility.com.
“Consider how many people invest in the stock markets around the world today, either through their 401k plans, private plans, businesses, etc. It’s probably around one or two billion out of the world’s population of seven billion. We should treat all that collective brain power as the world’s biggest supercomputer.”
We’re proud to present you with our “Know Your Possibilities Guide,” a tool and free resource for you to take notes, review, keep on hand, or even share with your friends and family. So grab your copy, click the play button and follow along. You’re just minutes away from discovering your next Place of Possibility.
A Glance at this Episode:
1:44 Typically, if someone is an expert in their field, we expect to rely on their advice. But in the investment industry, that’s not always true.
2:35 There is no reliable evidence that anyone. Or any group of people can effectively predict the short-term direction of the stock market, but that doesn’t keep the investment prediction business from being extremely lucrative.
3:55 Ever take financial advice from Jim Kramer? Not a good idea. Here’s a look at how off-the-mark his predictions often are.
6:00 Permabears are one financial industry clique that always stands behind the “Armageddon” prediction and goes to great lengths to make you buy into it.
7:06 Here are a couple of ways the financial media strikes fear in the hearts of investors.
8:49 If it doesn’t bleed, it doesn’t lead, which is a true motivator behind what the financial media serves up.
9:43 As a side note, here’s how the recent tax deadline extension for residents of some California counties can put more money in your pocket.
11:23 Given its standing in the investment industry, JP Morgan should be able to predict economic trends, right? All predictions were wrong!
13:05 What about Merrill Lynch? After all, “Your Future Deserves Merrill Lynch” was once their slogan. Wrong again.
14:30 Shall we keep going? Here’s another failed prediction from Citigroup at the end of 2021 – hint 2022 didn’t look anything like what they said!
15:04 Blackrock Investment Institute made some predictions of its own, and while they were right about bonds, their reasoning was, you guessed it, wrong!
16:08 Picture someone wearing a wizard hat the next time you hear a financial prediction because NO ONE can accurately predict short-term financial market performance.
17:22 If Richard had invested $100 the day he was born, it would have gone up 102,000% – proof that a long-term investment strategy is smart.
18:33 Would capitalism fail one day soon? It will never go away.
19:43 Here’s why we should consider the collective brainpower leading to worldwide investment in stock markets to be a sort of
21:57 This replicable experiment shows just how accurate collective wisdom can be.
23:19 This is why trying to predict the short-term direction of the stock market is futile and pointless.
24:02 Here’s the primary key to successful long-term investing – building a portfolio that can withstand the unknown.
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Links/Resources Mentioned in this Episode:
- Here is more information on Investment Company of American (AIVSX) or you can find more information by plugging it into your search browser.
- For an example similar to the jelly bean experiment that demonstrates collective wisdom, go to https://tinyurl.com/4ujnh75n.
- Ensure your family’s wealth will live on for generations to come. Order your copy of Endless Inheritance by Richard Del Monte today! https://aplaceofpossibility.com/endlessinheritance.
- If you’d like to know more about Del Monte Group’s approach to investing, we encourage you to download a copy of The Investment Answer, which we now have available as an Ebook. It’s a very easy read — you can probably get through the entire Ebook in just one evening — but it has the potential to revolutionize your relationship to investing and help you avoid many, if not all, of the mistakes you may be making without even knowing it. To get your copy, go to https://APlaceofPossibility.com/DMGInvestmentAnswerEbook.
- Del Monte Group offers a variety of free resources to help you make innovative and educated financial decisions so that you can keep, grow, and enjoy your wealth starting now. Find them by visiting https://aplaceofpossibility.com/resources.
“One-size-fits-all” won’t fit you here! The Del Monte Group team understands that everyone’s financial goals are unique. That’s why we always provide customized advice. No matter where you are in life, you can depend on our proven expertise to provide financial planning support for long-term success. Ready to get started? Schedule a meeting with Richard or Angela in our Alamo, CA based office today or we can meet via Zoom! >> You can select a date and time that works for you via our calendar, call us at 925.736.6410, or send an email to Info@APlaceOfPossibility.com. We can’t wait to help you!