I wrote this article on October 13, 2011 on my Golden Valley Patch Blog.
In the investment business, as soon as a financial expert puts his or her forecast out for all to see and hear, most likely something unexpected is going to happen
Whether it is about the direction of the stock market, the price of oil, or how many new cars will be sold this month, forecasts are most times more wrong than right.
But that does not stop the daily stream of predictions.
I believe that most financial and economic forecasts don’t intend to be correct. When was the last time you read or heard about an accurate financial forecast?
No one ever holds the financial experts accountable for their forecasts at a later date. That is the reason that most forecasts are only made in order to bring attention to the person or the company making the forecast.
The real truth is that no one can ever know what is really going to happen with the stock market, interest rates, housing starts, unemployment, retail sales, Federal Reserve policy, etc.
When long-term investors begin to worry about forecasts, they tend to lose sight of what is actually going on in the financial world now.
When you learn how to manage your company 401(k) retirement plan account based upon what is actually happening in the financial world now, your investment results will improve.
And you will realize that financial forecasts are for entertainment only.
Ric Lager
Lager & Company, Inc.
