Should you listen to the financial expert on TV?
Whether you have stumbled onto a Wealth Managers podcast, or turned on the TV to Bloomberg, only to hear the expert on TV tell you that the markets are going up or down, buy this stock, sell that stock, these are our top 5 stocks to buy, ask yourself this question, is the expert managing your portfolio, are they managing your trades?
What are the expert’s time horizons, are they saying the markets are going up over the next 4 years or 4 months? What does the expert recommend if the market fell 30% would they sell? They might be right, but like all experts they tend to be always one or the other, ‘bullish’, meaning they always think the markets are going up and there are experts that are ‘bearish’ who always think the markets are going down. What exactly does the expert mean when they say something, generally the comments are vague and they are not telling you exactly what they would recommend?
The short of it, never do anything what someone on TV recommends, they do not know your risk tolerance they do not know your personal situation, your time horizons or goals, and in most cases the expert is no more than 60% sure the stock or market will go in the direction they suggest.
The Financial channels want advertising revenue and viewers, and if the expert is right one time in ten, that creates viewers or old school readers if in a publication, the majority of financial channels only put bearish experts on TV when the markets are falling and vice versa, they only put bullish experts on TV when the markets are rising.
My personal opinion, if you were any good at investing you would not be wasting hours building your pyramid on TV when you should be trading the markets, unless the reason for going on TV is to make money and influence public opinion.
You are not going to make money watching or being on TV!
Check out Robert Kiyosaki’s comments in September 2021 who was hoarding Bitcoin, or was he? What happened to Bitcoin? Within weeks it fell and eye watering 78% read here
You’ll also find my comments in the same article.
Interested in direct stocks, see our global stock portfolio performance here.
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