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! IMPORTANT This information is of a general nature only and may not be relevant to your particular circumstances. The circumstances of each individual and investor are different and you should not act on this information without speaking to a financial, tax or legal adviser, who can consider if the financial product and strategies are appropriate for you. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. See full Terms and Conditions here.
Tony Sandercock (Author)
29/1/2019 11:12:11 am
Thanks for your comment Ankit. Here’s the only thing I’m sure of after looking back on the history of the price of gold — it’s extremely volatile and cyclical. I’ve no idea where it’s heading. My suggestion to investors is to focus on those things they can control – diversification, how much they pay, only take risks that provide a reliable reward and keep emotions in check.
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7/1/2019
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