Peter Lynch: Why You Should Always Ignore Economic Predictions When Investing

You don't have to go far to find dire economic predictions. Just turn on your TV or open youtube; you will see predictions about what will cause the next financial crisis, economic collapse, or great depression. Whether it is caused by rising interest rates, inflation, or national debt, someone is always claiming the next crash is right around the corner. That is why in my job as a professional investor and in my own personal investing portfolio, I like to remember what Peter Lynch has to say about macro economic predictions. There’s always going to be something to worry about. Make sure to like this video and subscribe to the channel if you aren't already. It’s my goal to help you better understand investing and make you a better investor. Now let’s take a listen to what Peter Lynch had to say in 1997, as it is even more relevant now than nearly 25 years ago.

[josephbrolly]

Lynch is an absolute scholar and a gentleman. One hell of an investor and a great teacher. Loved his books

[dumolollen]

Mr. Peter lynch is right as an investor as long the companies with good business are their, there is no need for looking at economic datas

[inertiaforce]

I agree completely most economic predictions are bullshit. Economics is not a hard science. It's not physics or chemistry.

[owentomos]

Economic predictions are based on the premise "with all things being equal". But in reality they never are. There is always some unexpected change or shock to the system.

[cosmiccoffee]

"Ask if he knows if the shape of the yield curve is the wrong shape of the yield curve." Always a classic.

[WasabiJohn]

Brilliant person... He was on the individual investor's side...

[dakotah]

Great video. Thanks. Always posting very timely concepts and videos

[mghoang]

I was 23 when I graduated college. I searched Amazon for stock market books. I found Peter Lynch and read his books in the following order:

1) learn to earn
2) one up on Wall Street
3) beating the street

[AlejandroRasmussen]

Reality is uncertain, we with our minds see patterns to make sense of it, and there are patterns….the problem is when we go overboard and try to make sense of everything….forgeting about the uncertainty of life…..the stock market reflects the universe in that uncertainty is always there looking us in the face…..

[elroco]

I agree. It will only discourage you. You have patience and understand that it will go up and down.

[awesomearun]

There's always something to worry about..❤️

[smithtimothy]

Nobody laughed at his funniest joke. "They're a bull if they take their lunch on the way to work."

[liberty]

It pays to zig when others zag. Last year when everybody said the oil market was done, I bought the dip and today I'm laughing all the way to the bank

[Duncan]

There is ALWAYS something to worry about. That's the key here. There's always been people banging on about inflation, interest rates, national debt, war etc... there's ALWAYS something to worry about, always has been, always will be. But it doesn't take away from the fact that the stock market has been the best place to be for the last 50+ years easily. Put your money in to the S&P 500 and LEAVE IT.

[Mike_ICP]

Wow changed my perspective of the man. I like him

[pydzio]

5:00 Japan actually went through worst depression in 90"s. Whoever invest their money back then has basically lost great amount of it.

[jimhen]

His best book was Beating the Street. I like that he is a short position trader-- as I see myself. I think he over diversifies however. Running Magellan however he was forced to. His bright spot was revealing the restrictions fund managers imposed on him. For example he once disclosed he couldn't invest in union run companies. Many fund managers followed this abstract nonsense-- leaving underpriced deals for unrestricted management.

[scottw]

Oil went from four to forty and we had double digit inflation...I respect Mr. Lynch but there were real hard times out there for average Americans. My parents could barely keep the lights on in those years. Thank god for Paul Volker who reined in inflation and double digit interest rates. That's when we had government helping us instead of selling us out like the current one.

[Jonathan]

Not saying he is wrong but a couple things to consider.

#1). In 1997, interest rates were about 6%, now, in order to keep the market growing, and avoid recession, the government has lowered interest rates to zero. That not only has hurt bond investors but also has eliminated that tool from future crashes.

#2 there has been 4 quantitative easing from the US government since then, and it’s getting to the point where inflation is actually a real concern

In order to avoid any economic hiccups, western governments have taken radical and possibly irresponsible action to support markets, which has allowed poorly run companies to stay afloat on cheap debt but the fact is the government is running out of tools to keep it going. Does that mean he is wrong about the 15 years, no. But that does not mean that there are not some real problems starting to show right now, especially if you consider the amount of dollars the us exports around the world.

[justus.justus]

10:13 "Overseas the numbers are much better", still applies today. You should look to Brazil now, it's quite low-priced