We have entered that time of year where the financial media goes into overdrive, providing more misinformation than usual. The trigger is end-of-year predictions about next year.
They are meaningless. And what’s worse, relying on them can hurt your financial well being.
I’ve been contacted by a couple of media outlets looking for predictions, as well as folk from the general public asking me to look into my crystal ball.
Here were my answers.
Are stocks overvalued?
I don’t know. No one really knows until after the event. All I can tell you is markets go up over time.
What are the signs I should look for that predict a market correction?
There are none. If someone really could consistently and accurately predict the short-term direction of markets, they would be too busy counting their money to find the time to tell you!!
What’s your view of technical analysis?
I agree with this quote (author unknown): "The only thing we know for certain about technical analysis is that it’s possible to make a living publishing a newsletter on the subject."
Should I buy gold?
While Gold could either take off or tank, it should be part of a properly diversified portfolio.
Are stocks vulnerable to another pullback .
Yes. They always are. The problem is no one has the expertise to tell you when market corrections will occur, although many would love you to think they do.
Do you have any predictions for 2019?
Those who have a broadly diversified portfolios, keep a lid on fees and taxes, only take risks they feel comfortable with and stay the course, will be fine.
Do you have an investment goal for 2019?
Make my investing about as interesting as watching paint dry. Leave the excitement to others.
No doubt those media outlets chose to go with someone else!
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