I never posted this clip before, but three years ago today, I basically got spanked by Melissa Francis on Fox Business News for daring to suggest that all the experts then confidently predicting higher interest rates might be wrong.
You see, I get warning bells going off in my head whenever ‘everybody’ thinks they know what’s going to happen next in the financial markets. I’ve learned that almost every time, they end up getting it wrong.
I’m naturally agnostic about making market predictions, knowing how unpredictable the future really is. But whenever everyone else seems to be in complete agreement about what’s next, my own confidence level skyrockets that they’re going to turn out to have gotten it wrong.
The Brexit just last week is only the most recent example of this phenomenon. Everyone in the media was predicting catastrophic consequences for the markets. One short week later, most of the stock markets are actually higher.
I am dead serious when I say that your personal financial success depends on your developing the ability to avoid following the crowd and instead do the opposite of what they are doing. The odds are overwhelming that you will end up getting it right. It isn’t easy, but with practice you can get good at it. – Richard Del Monte
Watch the clip here: