I am sometimes described as “contrary.” Actually, the more commonly used terms are “opinionated,” “arbitrary” and “judgmental.” There may be varying degrees of truth to all of them. Today, however, rather than temper or minimize my “contrarian” views, I’ve decided to embrace them. Some of the statements I’m told fall into this category are:
1. Most financial news harms investors. Most financial news is a parade of “experts” peering into their respective crystal balls and giving predictions. They tell you when to get in or out of the markets, when to buy or sell stocks and which actively managed mutual funds to purchase.
Although Jim Cramer is the most notorious of these “financial psychics,” he is hardly alone. Almost every financial talk show on television follows this format. It’s also the primary thrust of the written media as well. I’m sure you have seen numerous stories about the “world’s 10 best stocks” or the next “hot” mutual fund.
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