What a difference a month makes. It wasn’t too long ago that it seemed the market was in freefall and there was a general feeling of doom and gloom in the market. Could this be the long awaited correction that the doomsayers had been predicting?
Here we sit just a month later and the market has been making new highs. While there may still be a bit of uneasiness in the market, the tide has turned (at least for this week) to those with predictions of the bull market continuing with no end in sight.
What can we learn from this market rollercoaster ride? Simple. No one, I mean absolutely No one, knows where the market (or a particular stock) is going. Anyone that tries to convince otherwise is either delusional or a liar. Think that’s a little harsh? I don’t. If any of these financial pundits really knew where the market was going, do you think they would tell you? Not a chance. I know I’d be sitting on a beach somewhere warm, placing trades on my iPad instead of facing the prospect of another long, cold, snowy winter in New Jersey.
The financial media has no choice but to trot the analysts and pundits out for their daily crystal ball sessions. After all, they have an entire business day to fill up with content and how many times can you just give market statistics before their viewers change the channel to reruns of Gilligan’s Island. They know we can get the current data with just a tap on our smartphones. Give us the answer to where the market or a particular stock is headed and we’ll sit and watch for hours.
Listening to the predictions of those that don’t have your best interests in mind is never a good idea. What happens in the market today, tomorrow, or on any given day shouldn’t have a long-term effect on your financial success unless you react and make rash decisions. These rarely end well. If you’re so exposed to the market that you feel the need to “watch” all the time and a little blip (or even a big blip) sends you into an emotional tailspin than maybe it’s time to take a good look at what you’re doing.
David J. Seibel is founder and Managing Partner of AGS Aurora Financial Services LLC (www.agsaurora.com), an independent financial advisory firm in Matawan, New Jersey. You may contact him by email at firstname.lastname@example.org.
Investment Advisory Services offered through Global Financial Private Capital, LLC a SEC Registered Investment Advisor