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The $145 Trillion Dirty Little Secret of Investing
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I worked in venture capital and private wealth management for more than a decade. I’ve been investing for more than 20 years and have seen every dirty little secret the stock market is trying to hide from you.
The stock market is rigged, but that’s not the big secret. Stock prices are manipulated by insiders, but even that isn’t the biggest lie told by investing experts and Wall Street. The biggest secret Wall Street and even YouTube investing videos don’t want you to know is that nobody knows where stock prices are going…EVEN ME!
I stand behind my analysis and am proud of the track record for the stocks we’ve recommended on the channel but I DO NOT know which stocks will make you rich. Nobody does. I do not KNOW when stocks will crash or what the economy will do. Even Warren Buffett doesn’t know that.
What I do know is how to use what I’ve learned in financial analysis, economics and investor sentiment to reason through a most likely case for stocks and to pick the stocks I think will do well. That’s all anyone can do and if anyone tells you they KNOW the best stocks to buy now…they’re lying!
Your work as an investor is then to look for investing advice that walks you through the analysis, that shares the pros and cons of investments and teaches you how to be a better investor. If you’re only watching lists of stocks to buy without actually thinking through why these are good stocks, then your odds are no better than going to Las Vegas. At worst, you’re buying into a stock market lie perpetrated by Wall Street and online ‘influencers’.
Using this knowledge means asking yourself three questions whenever you watch an investing video. First, is the analyst walking you through the stock analysis…hell, did they even do any analysis themselves? There are a lot of YouTube investors that just look at a chart and tell you to hope that the stock price keeps going up!
Second, does the investing advice include both sides of the story? Are the pros and cons of the investment being offered and the risks to the stock price? Besides showing you that the investor has done the analysis and actually thought about all this, but it’s going to help you make a better investing decision.
Finally, what is your opinion on the stock? DO NOT just buy stocks on the advice of some YouTube investing channel or even on the advice of a Wall Street analyst. Nobody cares about your money like you do. In fact, very few people care about your money at all! Use investing videos as a starter to your own research into a stock and the stock market and make your own decisions before you invest.
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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.
#stocks #stockmarket #investing
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