Do you see all of the articles with headlines such as “Best Investments for 2017” and the like? If so read them with the understanding that they are most likely written by individuals who have an interest in that security, or it is based on previous performance. Either way, it is dangerous for you to act on such articles and never make financial decisions based on them alone.
Some of the articles may have some truth in them and may even make a good argument to purchase something. But if you base your investing decisions on that alone you may be in a world of hurt. Get ideas from these articles but take their information and go a step further by doing your own research on a particular security. And that goes for any security that is recommended to you through articles, TV shows or financial planners.
Never take someone’s word on these matters with blind faith. Your hard earned money and your financial health are worth some research on your part. Warren Buffett has a great rule of thumb when it comes to investments. If you do not understand the business or how they make their money, then stay away from it. This means if you do not understand how the business operates and generates profits then how will you truly know if you are a solid investment or not. It is vital that you understand the basics of any investment and how that will impact your returns.
And from time to time I enjoy watching Mad Money on CNBC with Jim Cramer. The same goes for what you see on his show, and in fact, he tells you as much. He makes recommendations for various stocks in different segments of the show. I know many people see him as an entertainer, but he does make some good points if you follow them. He stays up on current events with his picks. Vital to any good investor. He looks at the financials of the company. Again, vital to any good investor. And he listens to the quarterly conference calls to see what the company has done and is planning to do. This gives any investor an idea of where the company has been and where management sees it going. In other words, do not take him at his work but rather do you own research to better understand the operations of the company. Only then is it safe to invest in his opinion.
Some sound advice from someone who has done a successful TV show for over ten years and made a killing as a hedge fund manager. He is fun to watch, and it is easy to write him off as someone who does not know what they are talking about but if you watch and head mine and his warnings you can do some good. That is the same with all the articles that I have seen over the previous weeks about what you need to invest in for 2017. If you understand that you cannot take these shows and articles for gospel and then do your research you can make some good and decent returns on these securities, they promote. But never do that blindly, or you will most likely incur some losses that could have been avoided.
Just remember that people on TV shows may be knowledgeable, but no one knows what the future of the markets hold. And with the new president and the new policies that will be emerging over the next weeks and months, remember that the markets do not like uncertainty. Be cautious but by no means should you avoid the markets. They will be buying opportunities as there always are and if you remain vigilant, you may even have some opportunities to sell and make a profit. There are always opportunities in the markets if you know where to look and how to act. And by doing your research, you will gain the advantage over those who act solely on fear and what others tell them.
If you have any questions or need additional information, please do not hesitate to contact me or leave a message on this post.
