STREET DOGS
Never forget that the practised pundit is making appearances and dropping quotes for the benefit of a firm or a career — and not necessarily for your benefit.” — Anon
Giving advice to a driver from the backseat of a car is easy enough and, for some, even seems to be enjoyable. Whether that individual is actually qualified to give advice is another issue. In the financial blogosphere and media there is a mass of backseat drivers recklessly directing investors off cliffs and into walls. There are no consequences for these blabbers. It’s the investors managing their personal portfolios who ultimately suffer the pain of failed financial dreams. Unlike drivers, who require a licence to drive to the local grocery store, there is no predetermined requirement for investors to drive their own portfolio and, unfortunately, that applies to the bloggers, journalists, economists, analysts, strategists and other pundits who give advice. A little charisma and articulation seem to be the main requirements. Otherwise, pretty much anyone can emphatically counsel investors. It shouldn’t come as too much of a surprise to find that many of these selfproclaimed experts have little or no personal experience in investing money.
It’s easy for overly bearish or bullish pundits to lead investors astray with outlandishly gloomy or optimistic predictions. All too often, the pundit’s first priority is selling a convincing story — whether grounded in reality or not. Stories are usually constructed looking into the rear-view mirror, by creatively connecting current events in a way that may seem reasonable on the surface.
Crusty investors who have invested through various cycles know better than to pay attention to these opinions. As the saying goes, “Opinions are like ***holes. Everybody has one.”
Adapted from an article at InvestingCaffeine.com.