The Spinning “Talking Heads”

Watching the “market” squeeze the “false credibility” out of the “experts” these past few days has been entertaining if nothing else.  After Monday’s drop the message was that “everyone should have seen the correction coming.”  For example, the lead story in the New York Times read “Signs, Long Unheeded, Now Point to Risks in U.S. Economy.”  OOPS!

I never have liked the term “correction” to explain a move in the market indices.  By definition it implies that the market “got it wrong,” being under or over valued.  So looking at the market as I write this, I guess the past few days the market “over corrected” and has now “corrected” the “correction.”  You can see how this starts to become a bit silly, but it also shows how little credibility should be given to the “talking heads” and journalist posing as “experts.”

But alas, they are not the problem.  As Pogo once said, “we have found the enemy and it is us!”  Investors, both large and small, demand an explanation regarding what has happened in the past, but more importantly, a forecast of what to expect in the future.  The first demand, an explanation of what has already happened, that’s not worth much.

The second demand, a forecast of what the market will do in the future, that would be invaluable, if only it was accurate.  Anyone who could make accurate forecasts consistently, would have unlimited wealth and not be spending their time on CNBC or Fox Business News sharing their forecast with us.

For you advisors, about a year ago, four years into a bull market, I suggested you hold a “fire drill” for your clients.  If you did, great, if not perhaps this would be a good time.  For you investors, not speculators, you are in it for the long run, so don’t waste your valuable time stressing about the market.  Enjoy your life knowing with certainty, that you will have a successful investment experience.

5 Comments

Filed under Advisors, Investments, Investors

5 responses to “The Spinning “Talking Heads”

  1. Dennis D. Duffy

    Great post!

    Look forward to hearing you present at Matson Money Symposium Saturday!

    Sent from Dennis Duffy’s iPhone.

  2. William Chisholm Jr.

    Very well said and thanks

    Sent from my iPad

  3. Debbie Fisher

    Good one, Dad!

    Hope all is well with you. We are enjoying the last few moments of summer.

    Love you!

  4. John Ceparano

    Hey Dan,

    I have been a fan of your passion and they way you always made the complex simple in your presentations or as I call them “Edu-tainment” sessions with DFA. And both well grounded as CPA’s I can relate to your prior life as a CPA, helping guide our clients.

    I still miss in the middle of a presentation where you pick a audience participant to kindly remind him where you were at if you should get off the topic, as you always did, to bring you back – hysterical!

    I look forward to following your blog. I hope you are enjoying life and hope to meet up with you again in S. Florida. I am up closer to the Ocala area and still enjoying serving clients and growing our business. When I can help clients keep their long -term perspectives and values in place, that’s the real reward beyond the financial rewards because it’s what matters most.

    I went out with my 24 year old son this weekend, with my wife away with friends for the weekend and we ran into a client and friend of mine who told my son went I went to get us a drink that I was one of the smartest guys he knows. Well later when I heard of this from my son, which he said made him feel really good about his dad, I told him, the reason he thinks I am really smart is that years ago he focused on his business while I convinced him getting his ducks in line with his planning and focus on the fundamentals of diversifying his portfolio so he could sleep at night regardless of what happened during the day. The fact that I was there when life events happened (taking over a family business after the deaths of his parents) created a relationship and bond because I was there when he needed me.

    Our relationships combined with our talents is what makes us valuable. Thanks for the memories and staying involved in our close community of advisors!

    My best, John

  5. Hi Dan,
    Enjoyed seeing you Saturday at the Investor Symposium. Your presentation resonated with our clients and was very much appreciated.
    Thanks, Greg

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