Predicting The Stock Market – Right or Wrong?
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Every Person who is directly or indirectly investing in the Stock Market has this most common tendency of Predicting the Stock Market. The main thing that we will demystify in this post is whether it is right or wrong to predict the stock market?
To be honest, Predicting the Stock Market is impossible!
Page Contents
Professional Predictors – Are They Real?
You will find many people who claim to be the professional predictor of the stock market and they know everything about where the market is about to go and they position their investments accordingly and profit from them.
In reality, these same so-called professional predictors will be selling fee-based stuff to tell you in which direction the stock market is about to go. Let me ask you one question here, if you know where the market will go – you will invest yourself and profit from it or you will sell your prediction to others?
Profiting from prediction means they are unable to make real money out of their predictions and they want to snip off money from the prediction advice as a fee.
These things have been hovering all around the investor community through various paid business channels & social media which is creating a wrong buzz among investors and their investment perspective.
Get Your Focus Right
You should clear this fact that predicting the stock market is not possible and you should not focus on this either in fact you just focus on your financial goals – the reasons for which you are investing and want your money to work for you to achieve those goals – That’s all needed from your side.
Because over the long term the stock market follows the earnings of the underlying companies and in the short term, it follows the sentiments. Falling for sentiments in the stock market is a sin.
Conclusion
In nutshell, It is wrong if you’re predicting the stock market. Stop Predicting the right time to invest instead, stay invested and focus on achieving your goals.
Here, at last, I would like to quote John Bogle’s own words to help you understand what his own experiences are on this,
“I don’t know anyone who’s ever got market timing right. In fact, I don’t know anyone who knows anyone who’s ever got it right.”
If you have any query, you can tweet me @gurpreet_saluja
Hi, I’m Managing Director at Gurpreet Saluja Financial Services where I help my investors to invest in mutual funds and achieve their financial goals. I’m also a Value Investor and here I write about Personal Finance & Investing.
