Title: Ignoring stock-market predictions for 2021
Headings: Ignoring stock-market predictions for 2021
Ignoring stock-market predictions for 2021
Content: 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. The stock market can be a very expensive and costly place to learn that no one is endowed with the gift of financial prophecy. As the saying goes, there are three types of stock-market forecasters: those who know that they don’t know what the market is going to do; those who don’t know that they don’t know what the market is going to do; and those who know that they don’t know what the market is going to do, but get paid lots of money to pretend they do.