If you’re worried about your retirement investments, it’s easy to think that all of those TV finance gurus in nice suits on CNBC and Bloomberg are a source of wisdom. They come on these shows and say where they think the stock market and economy is going. Should you listen?
Well, one Georgetown professor studied the accuracy of TV prognosticators. What did he find? That these guests were no more accurate than a coin flip.
The moral of this story?
Usually, doing nothing is best. Buying and selling investments frequently ends up costing you money and rarely improves your situation. Leaving your investments to grow over long periods of time usually works best.
So when you’re tempted to check in with a financial news channel, remember, a coin flip might just save you time….and be equally likely to get it right.
“We have long felt that the only value of stock forecasters is to make fortune-tellers look good.”
–Warren Buffett
