You want to get a head start on where the stocks are going in 2011? Looking for some expert advice which will give you a nice little summarized prognosis for the year ahead? Then read this article, and consider it a warning!
With the New Year just gone, all media outlets are desperate to get a sneak peak at next year’s indices and get the predictions on what they will be like at this time next year. So, they turn to so-called experts and gurus for their educated opinions on 2011 stock market predictions. And it is a great job for those “experts” and “gurus”, because if they are right, they will get praise all year, and if they are wrong (which is just as likely), then most of the time no one will call them on it.
The problem with reading a stock market forecast 2011 is that the mere notion that it is there gives the impression to investors that they are receiving sound, rational advice. But a lot of the 2011 stock market predictions are just random foretelling. Don’t buy easily into some “gurus” who just want to be seen on TV or be referred to in written publications, because their word is usually much less reliable than the weather forecast.
The thing is that you, as an investor, have to be focusing on the trends throughout the year in order to make wise decisions. It is hard to predict what will happen a year in advance, so the key to long-term market success is to always react accordingly to whatever the market may throw at you. Reading or watching 2011 stock market predictions will only reinforce the old myth of Wall Street that you should leave your decisions regarding investments to the “experts” or those who “know best”.
Looking back over the last 19 months at the consistency of action, this approach was looking pretty popular. That is because for a lot of investors out there it has proven to be quite difficult to navigate the rough market conditions. It is also because we are currently living in an environment where the detachment is huge between what is going on in the “real” world before our eyes, and that which is happening on Wall Street.
So, the best advice here is to watch the market as it changes month by month closely and make your own educated guesses. After all, that’s what all those “gurus” do, and they may not necessarily know it better than you. In any event do not take notice of any long-term forecasts for the year, so many things could change that we are completely unpredictable. Even if you do end up making an investment based on predictions for the next year, make sure to monitor it closely and bail out if you see any signs of failure.
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