Title: Ignoring stock-market predictions for 2021
Headings: Ignoring stock-market predictions for 2021
Ignoring stock-market predictions for 2021
Content: During my 20 years as a financial adviser, the one question I have been asked more than any other is, “What do you think the market will do?” My response has always been the same: “ I honestly don’t know.” Anyone with an answer other than “I don’t know” is lying. The truth is, no one can accurately predict the stock market for any meaningful period of time. Nobody knows with any real certainty if the stock market will go up or down tomorrow, next week, next month or next year. The fact is that stock-market forecasts and predictions are nothing more than a marketing gimmick designed to attract new viewers, listeners and clients. The financial media and investment industry know that investors hate uncertainty, and predictions provide a false sense of certainty about the future. If financial forecasting is meaningless, how should investors manage their money and make their investment decisions? Successful investing is about following a disciplined investment strategy based on proven Nobel Prize-winning investment concepts and techniques, such as asset allocation, Modern Portfolio Theory, risk management and diversification.