Tag Archives: 2016

Relax, the Year is Almost Over

Relax, the Year is Almost Over by Jeff Holland{1 minute to read} Enjoy the holiday season! The election is over. The year is almost over. Don’t think about your money. Let your money work for you. Markets are always priced to have a positive expected rate of return. The media and your neighbor or friend are always going to try to scare you or get you to do something. But you should follow the plan that you have in place.

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Lessons from 2016 Election: Invest, Don’t Predict

Lessons from 2016 Election: Invest, Don’t Predict by Jeff Holland{2 minutes to read} People often base their investments on their emotions and their predictions. What I want people to realize is that when you’re investing properly, you’re not really making any predictions. You’re using data and empirical research that incorporates information from market participants globally.

Predictions can seem very entertaining. They might even be fun, with a small stake of the money. But you only remember your correct predictions. Predictions can cause you to go off the rails and not achieve your financial goals. You should not base your portfolio on predictions. You want to succeed with your financial goals. And if you think you’re smart because you make an accurate prediction, remember you can also be wrong. As John Kenneth Galbraith said, “The only function of economic forecasting is to make astrology look respectable.”

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Don’t Rely on a Crystal Ball! Use Research to Plan for Your Financial Future

Don’t Rely on a Crystal Ball! Use Research to Plan for Your Financial Future by Jeff Holland{2:15 minutes to read} At amusement parks, the fortune-teller is always a major attraction.

Predictions are fun. Predictions are entertaining. Ultimately, though, predictions cause problems – especially in the market. Using predictions to plan your financial future is extremely risky. Continue reading