Meteorologists have the job of interpreting weather data and telling us what we can expect the weather to do the rest of the week. Usually we need to know whether to take an umbrella to work, but sometimes we need to know whether to pack up what we can carry and leave our home. When it comes to the weather, we need to know the future. As a direct result of this need, we tend to believe what the meteorologists tell us, despite our frequent dashes through the rain.
Market chartists have the job of interpreting trading data and telling us what we can expect the markets to do over the next few months. They tell us that we need their market predictions in order to have proper involvement with our portfolios. We also tend to believe what they tell us.
In both weather and investing, we need informative and motivational communication: people need to evacuate disaster-prone areas in time, and investors need to know how to behave based on how the market really works. In investing, unlike in weather, we do not really need predictions. So why do market experts try to tell us what the market is about to do? Because the more we indulge our desire for predictions, the more experts will try to feed them to us.
Here is an ugly truth: no one knows the future; our want of a prediction can never be truly satisfied.
Here is a beautiful truth: you do not need market predictions in order to have dependable investing success. What you need is coaching.
Simon Joshua is a licensed investment advisor representative at Cornerstone Wealth Partners in Michigan. He has structured his practice around investor coaching and committed himself to leading communities in establishing a legacy of fulfillment.
Simon Joshua 