What The sharpest minds on Wall Street predicted for S&P500 In 2022
Goldman Sachs - 5,100
Wells Fargo - 5,200
JP Morgan - 5,050
Not one close to the experts predictions
The same have happened with Indian markets as the experts predicted that the bull run that started after covid, Will continue forever but you already know what happened
That’s why I say, Pay zero
attention to forecasters. ZERO !!
One of the worst mistake people
can do is follow institutional research to make investment decisions
Firstly Understand that nobody can
predict the market
There are millions of variables that can change on an everyday basis, It is impossible for a human, or even for an AI to predict the future
on the other hand it is human tendency to seek
comfort and the illusion that the future can be predicted gives this comfort, I’m
no exception too
People spend hours reading these
reports from Goldman, JP Morgan, Macquarie, and what not thinking that they are
doing something productive, at least I used to do that in my early years
Not just this, there is another
sinister angle to stock market Profits.
You should know that in the stock
market, one person's profits come from another person's loss
Institutions make a large part of
their money from retail losses
Hence, it is in their interest to
ensure that retail investors keep losing
So on most occasions, when institutions are telling you to buy, they are likely selling And when they
are telling you to sell, they are likely buying
then what's the solution then?
Should we do the opposite of what
they are telling us to do?
Of course No!
The best course of action is to IGNORE THEM!!
Let the sheep read all those reports and spend countless hours googling what is a certain investment bank saying, You just build a system with high risk reward and follow it religiously
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