If you listen to the news, you’ve probably heard some investment and financial planning industry folks make some wild predictions, and often those predictions don’t come true. In this week’s episode, Devin invited some friends to help them investigate some recent predictions and how they actually turned out. David Waldrop is a Certified Financial Planner with Bridgeview Capital Advisors and Andrew Comstock is a Chartered Financial Analyst with Castlebar Asset Management.
Devin shared some examples of pretty dire predictions by investment professionals, and asked David and Andrew how they would respond.
David points out that the fear of losing everything is pretty compelling – there’s a natural instinct to avoid danger.
Andrew recommends that clients focus on their individual plans that has been prepared for their unique situation and risk tolerance.
Devin talks about the three things to remember when things seem to be going poorly:
- Market declines are a natural, normal part of investing
- No one can consistently predict market movements
- This time is not different
In the conclusion, Devin and John talked about the ways to look analytically at predictions:
- Consider the motive of the person making the prediction
- Seek out contrarian opinions
- The tattoo factor
Stick with principles, not predictions!
Resources mentioned in this episode:
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