Monday, November 2, 2009

Don't listen to anyone who tries to predict market

On Mondays, we answer a question from a reader. If you have a question, please post it in the comments section.

QUESTION: What financial commentator do you like? Who do you think gives good advice?

ANSWER FROM DAN DANFORD: Well, I'd ignore any commentator who professes to predict the markets. There is little evidence that short-term markets are predictable, and those boneheads on television are entertainers, not advisors. Longer-term markets are more predictable, but few viewers care about a five-year prediction! Our website lists a number of terrific books and resources, but Jon Clements' new book "The Little Book of Main Street Money" is a great start. Also, as I've noted before, good spending habits are likely more important in building wealth than investment skills. For more on that, visit my review of Tom Stanley's new book "Stop Acting Rich" Simple answer? Boring works best. Focus on healthy habits and you'll prosper.

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