I’d like to discuss with you today some idiotic logic.
One of the major reasons many “Certified Financial Planners” give for avoiding the stock market is what they claim to be the market's miserable track record.
All the while, stock brokers counter-propose that it’s the perfect place to grow money, and they give their examples.
Who's right, you ask? Neither!
Here are the problems with the logic that gets them to their conclusions.
To begin with, both use the Dow Jones Averages at two points in time to justify their conclusion. That totally mitigates investments in specific stocks and allowing those investments to remain fluid throughout the time periods.
And secondly, obviously many investors make a great deal of money during terrible Dow Jones markets. And conversely, many others lose a great deal of money during powerful Dow Jones markets.
Soooo…
If I want to prove the market is a bad place to invest, I show it historically by picking a date when the Dow Jones was at a high, and I contrast it to a future date when the Dow Jones was at a low.
If I want to prove the market is a good place to invest, I show it historically by picking a date when the Dow Jones was at a low and contrast it to a future date when it was at high.
CONCLUSION: If you followed the advice of anyone who advised you to invest in specific stocks, and you lost money, the advisor’s advice was faulted.
Bill's Wealth Coach for Realtors Web Site
William S. Cherry
Real Estate Broker and Wealth Coach
Since 1964
972 677-7028
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