Over the years, I have heard many investment rules, rules of thumb, old wives tales and fund man- ager advertising slogans morphing into investment commandments. I thought I would add some of my own to the mix. A little bit tongue in cheek, but they can certainly be some food for thought.
I won’t believe every opinion, forecast, analysis, economic outlook or any- thing else remotely finance related, just because the person relating it is on television and speaks with a stern, learned tone of voice.
Content is king in this digital world, and serving up reruns of Bewitched and Gilligan’s Island just doesn’t cut it anymore. There is so much available air time that content producers must have trouble keeping up with demand.
Business news is no different. We have 24-hour cable business channels, access to global newspapers featuring in-depth investment analysis and all manner of financial blogs ranging from the professionally crafted, right through to an individual’s personal financial journey. Oh, and don’t forget the magazines, daily papers and news bulletins which are all contributing to our financial knowledge bank.
There is absolutely no shortage of resources helping us to form our investment opinions and decisions. Therefore it can be very difficult to ignore the investment pundit/guru who is wheeled out for all manner of finance related occasions.
Their views, either positive or negative, depending on the subject at hand, are delivered with the confidence and authority expected from expertise. And we seem to be constantly bombarded with this array of ‘soothsayers’, crystal ball gazers and economic fortune tellers as a part of the investment information process.
But were they right with their prediction, who knows for as soon as one opinion is aired in the rush to fill air time we get another and another? None of these predictions or forecasts are ever discussed again, so what was the point.
Well, this year I’m ignoring the lot. That’s right, the next time a Doctor of Economics from Grimsby – on -Tyne University is being interviewed on CNBNBLAH TV and suggests we are in for 12 months of economic turmoil, I am going to turn my back on the television and hum a favorite tune until they finish. With all this ‘airtime’ needing to be filled, this constant barrage of opinions needs to be seen for what it is – entertainment, that’s all.
My next door neighbour, colleagues at work or any mate down at the club cannot be, and never will be, a reliable source of investment information. If I follow any advice from these people it will only lead to misery.
When it comes to money, we are all experts. Everyone either knows someone or, someone who knows someone else, that has made a fortune on a particular business idea, share purchase or property deal. As a result, our friends love to ‘help’ us with our financial futures by giving us the low down and the secrets of success.
The old saying of ‘bullshit baffles brains’ really rings true in this instance. Any success our associates may have through the utilization of their so-called investment skills will be purely illusionary and the result of whatever particular investment cycle is peaking at the time of their actions.
I can relate hundreds of anecdotes about unbelievably confident ‘investors’ who happened onto the gravy train of a boom but failed to hop off before it pulled into a station. Unfortunately, along with the way they actually believed that it was all down to their own ability.
I don’t have to share the same life dreams and aspirations as the ones depicted in my bank’s advertisements.
Unfortunately, banks are not our friends. As much as they like to sugar coat themselves as partners, friends, helpers or whatever their ad agency has come up with as an image, they are actually a genuine pack of bastards who imbue 1950’s sales techniques in a 21st century time zone. Yet, back in the 60’s and 70,’ banking was different. Bank Managers back then were actually managers of their do- main and helped to create value for their customers.
Today it is totally different, with the banking evolution actually being a de-evolution thanks to some of the most incompetent management ever to be seen in corporate Australia and the world. There are copious press reports as well as Government reports detailing the despicable behavior banks have perpetrated onto their clients should you ever doubt these sentiments.
Use them, profit from them, but never put your faith in them.
I must stop believing the Government when they say “this is absolutely the last change to the superannuation system”.
Call me an idiot, but occasionally I have gone through my life actually believing that super was going to stay the same for the next 20 years. I actually believed it when Governments were adamant that tinkering with the system was totally out of the question. More fool me.
Note to self, when planning retirement under no circumstance will you plan with the current super legislation in mind. Keep short-term and review investment progress 6 monthly and take on board any legislative changes that have occurred. Be ready to make a move when the government does.
Here’s a post about just this issue.
I must always trust in my ability to research, think about, consider and anything else needed to be able to form strong valid opinions for my investment decisions.
This one speaks for itself. The internet has opened up huge resources allowing the average Joe to do all the ‘hard yards’ from their dining room table. Never underestimate this access to knowledge and if you need guidance there are plenty of places to look for it. You’re reading a good source of knowledge now, even if I must say so myself! Make sure you have a browse at the connections page, it has some good stuff that will come in handy sometime.
