Why Timing the Stock Market Never Works
source: http://retirement.equifax.com/2010/08/why-timing-stock-market-never-works.html
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- IlyceGlink
- added this
Believe it or not there's no magic formula that will ensure success in the stock market. Wouldn't it be great if you knew when the markets were going to take off or tank?
Market direction is driven by tomorrow's news. No one knows tomorrow's news. If we did, we would have predicted the oil spill in the Gulf of Mexico and the precipitous decline in the price of BP's stock.
The impossibility of predicting the unknowable does not stop the financial media and self-styled investment gurus from looking into their crystal ball and providing investors with advice.
The securities industry and the financial media work together to perpetuate the myth that someone out there has the ability to predict the direction of the markets. Hapless investors go from one "investment professional" to another seeking the holy grail: someone with predictive powers.
If you want to achieve your investment goals, you need to fundamentally change the way you invest.
Market direction is driven by tomorrow's news. No one knows tomorrow's news. If we did, we would have predicted the oil spill in the Gulf of Mexico and the precipitous decline in the price of BP's stock.
The impossibility of predicting the unknowable does not stop the financial media and self-styled investment gurus from looking into their crystal ball and providing investors with advice.
The securities industry and the financial media work together to perpetuate the myth that someone out there has the ability to predict the direction of the markets. Hapless investors go from one "investment professional" to another seeking the holy grail: someone with predictive powers.
If you want to achieve your investment goals, you need to fundamentally change the way you invest.
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- groups:
- Money
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- tags:
- Money, Stock Market, Investing, Predictions, 1 more
