Set Your TV on July 29, 2018 For Sunday Morning Weekend Today in Central NY on NBC 3
OMC Financial Services
7/24/2018 12:00 PM
Do Analysts’ Predictions of the Market Benefit Investors or Does It Create Confusion?
The ability to predict the movement of the stock market is an important ingredient in investing.
So, the first question to ask is what is the basis of the prediction:
Interest rate projections?
Geopolitical or political events, such as imposition of tariffs?
Next, is the prediction based upon short-term or long-term investing advice?
Market timing, i.e. when to invest and when to exit the market, is often influenced by the analysts’ predictions.
Market timing has proven to be almost impossible since there are so many factors that move the market in one direction or another.
Volatility is a part of the market and long term investors should adjust their investment strategy when economic conditions change.
Analysts’ predictions are useful tools for the investor to gain information; however, the market is comprised of many different elements and predictions are usually based upon a specific set of circumstances.