Stop Reading Stock Market Forecasts and Learn to Invest Wisely
The recent stock market weakness is making people nervous. If this includes you, heed this advice. The LAST thing you should do is watch or read stock market forecasts. When the stock market plunged in 2008, it scared a lot of people. Since then these same people have been looking around every corner for the next stock market drop. That's one reason stock market forecasts are so popular. And it's usually the most extreme forecasts that get the most attention.
Many investors think if they increase their understanding of how the stock market works, they'll make better decisions. They listen to a myriad of stock market gurus and pundits, equating a higher stock market acumen with a better return on their investment.
The fact is Wall Street firms spend hundreds of millions of dollars and much of there intellectual capital "predicting" the future of the stock market and then marketing their "insights." Other than the fact that their predictions sell well, no one can predict something that is fundamentally unknowable.
If working towards your goals involves investing (in the stock market or otherwise), it's important that you invest wisely. Stock market forecasts don't help you do that. Investing wisely is process-driven and unexciting. It includes:
YOU: Setting clear objectives and risk comfort zone
PATIENCE: Establish a clear investment time horizon
DIVERSIFY: Build a globally diverse portfolio in a broad range of asset classes
PROTECT: Be flexible to work to protect against large losses in bad markets
GROW: Position to grow greater than inflation over time
If you want to learn how, subscribe and I'll do my best to show you how.
QUESTION: Do you have a consistent process for making investment decisions?