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.