46. How has it been working for you?

On Oct 1, 2011, The Economist ran a cover story that told investors: Be Afraid. The subtitle tells you everything you need to know about the dire views of the author: "Unless politicians act more boldly, the world economy will keep heading towards a black hole."

So, did you listen to the experts? Or do you think that you're smarter than them?

A great article I read today, It's Time To Stop The Plundering Of Investors, brings this example. We hear every day contradicting views from analysts, economists, brokers, MSNBC, and way too many experts who all just know the future. It's funny how they have no doubts. Of course, it's the same people who did not tell you to get out of the market in 2008 to avoid the greatest recession since 1929, and the same people who did not tell you to get back into the market in late 2009, to enjoy a recovery that doubled share prices within 2.5 years. But having no clue never stops them.

And that Economist story?

The S&P 500 hit a a low for 2011 on Oct 3, and since then went up by 28%. Pretty bright for a black hole, I'd say.

45. Don't Read This!

More accurately, don't read the financial news.

Why?

Here's a sample: the headlines from Yahoo Stock Market headlines this morning --

So let's see what we have here:

1. "Stock futures little changed", although manufacturing data in Europe doesn't look good. Slight negative, it seems. But then...
   
2. You need to watch these 3 ETFs! What the hell does that mean? Is it like watching TV? Is it going to be exciting or funny? Again, meaningless advice. But wait, there's more!
   
3. "Major indexes on roller-coaster ride". Weren't they "little changed" a moment ago? Sounds like a lot of ups and down, probably down, because of that manufacturing data, but...
   
4. "Wall-Street looks to extend the rally into April". Hmmm, maybe this means the stock market is not going down or staying where it is, but actually going up? But then, this roller-coaster worries me. Wait, there's more!
   
5. "For stocks, a stable and impressive climb in 2012" - no roller-coaster after all?

In other words, within 5 headlines in a single day, analysts are predicting that the stocks will go up, will go down, will remain where they are, will be stable, and will have a roller-coaster ride. 

Maybe I find it all confusing and meaningless because I'm not watching the 3 ETFs show?