How will recent political upsets in the U.S. and the EU affect the markets?The BlackRock Investment Institute offers a schedule of political events to watch with an overview of their potential consequences. In an interview with CNBC on December 10, 2010, economist Harry Dent forecast the markets to drop 17,000 points. The fact that they didn’t is a cautionary tale for investors. The Director of Research for the BAM Alliance, Larry Swedroe, discusses market forecasts and their reliability.When someone advises you to “take some money off the table” in connection with your portfolio, you know they view investing as gambling. Jim Dahle doesn’t share their point of view and explains the risks of trying to time the markets.
The Intersection Of Politics And Markets– Investors have mostly shrugged off a series of political upsets – from Brexit to US President Donald Trump’s surprise election win. Yet these developments have long-term consequences, as explained in this new piece Politics Not Quite as Usual published by the BlackRock Investment Institute. Read more…
Forecasters Not Held Accountable– “Dow Could Crash 17,000 Points. This isn’t my forecast (but that of Harry Dent). But it’s a good reminder that you should ignore all such forecasts.” according to Larry Swedroe, director of research at The BAM Alliance. Swedroe reminds us of the advice of Warren Buffett: “We have long felt that the only value of stock forecasters is to make fortune-tellers look good.” Read more…
Should You “Take Some Money Off The Table?”- “One of my investing pet peeves is the phrase ‘take some money off the table,'” according to Jim Dahle of The White Coat Investor. Perhaps the reason why is the blatant reference to gambling. Read more…
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John R. Day, Bill Ennis, Stephanie Davidson and Matt Heller