Gurus are Accurate Until They are Not
Jim Cramer, CNBC’s highly public “market guru” is wrong more frequently than the probability of flipping a coin in your favour. His stock tips as of May 2014 were right 47.6% of the time. Jim Cramer is an entertainer and he’s very good at that. But gurus are accurate until they are not. This isn’t an attack on Cramer. He’s just an easy target.
There are countless gurus with predictions. They are often divergent and can be fairly extreme in nature. The Internet, news, radio, television all pick-up the predictions and pass them on as worthy of your attention.
What do many people do with the information? I hope they ignore it. I hope they ignore this entertainment disguised as investment advice without accountability. You deserve better. Everyone does.
So what’s next?
Carl Richards, author of Behavior Gap and friend, says you might want to ask yourself “When was the last time you read something or watched on TV and acted on it immediately and was glad that you did afterwards?”
You might also want to consider incorporating a sense of skepticism when reading investment or market related news and predictions.
Gurus are accurate until they’re wrong.