Unseasoned Investors Try and Predict the Future

In this short clip, we get out the Wall Street Guru Magic 8 Ball to forecast the future for us. It is just as good as any expert forecast. Seasoned investors use a disciplined investing strategy, so they don't have to try and forecast the future. The trigger for buying or selling (rebalancing) is not the forecast, it's the percentages of the funds in your portfolio. If they get out of balance, we rebalance back to targets, buying small amounts when stocks are down, and selling small amounts when stocks are up. This is simple but extremely hard to do over long periods of time. 
 
Seasoned investors also know there will be setbacks along the way. Yet, through wars, depressions, natural disasters, bankruptcies, and catastrophic historical events, we find a way. 

Feel free to share this important video to family and friends. 

Invest intelligently! 
John Borger and Scott Buchanan 


 

If You Could Only Sleep Through the Drama of a Crash

It's the Guru's job to forecast and predict. That is what they are paid to do. And the prognosticators either know it, and they use the forecasts and predictions to sell things, or they are naïve. 
 
Seasoned investors know there are infinite possibilities and is the reason why no one on earth will ever be able to reliably forecast and predict the future short-term direction of the markets. The market is a chaotic system. It is not as simple as A + B therefore C will occur. In addition, the formula is not static. 
 
When investors (or advisors and brokers) try and forecast the future, they can become their own worst enemy. There is a hubris that takes over them. They do not understand all the infinite random variables that go into market prices on a daily basis. 
 
Make sure you are one of the investors that has a good understanding of this concept, and never forget it, so you are not duped by the never ending parade of prognosticators in the financial media. 
 
If an investor could sleep through the drama of a crash, and wake up 5 or 10 years later, would they behave differently? Of course, but we don't have that luxury. That is why we spend so much time, money, and resources to teaching and coaching investors, so you know the end of the story. 
 
Your portfolios are built to take the turbulence. Find out how you and I can reduce the turbulence (volatility) in your portfolio. 

Feel free to share this important video to family and friends. 

Invest intelligently! 
John Borger and Scott Buchanan 


 

What if? People Worry About Things They Can't Control

What if? Can lead to imprudent decision making, and choices we would not otherwise make.

If you give in to the "what if's" (guessing about the future), you may get confused and become Wrong Way Parker. 

Feel free to share this important video to family and friends. 

Invest intelligently! 
John Borger and Scott Buchanan 


 

Dysfunctional Beliefs Can Crowd Out Knowledge That is Good Fo You

Fear and pessimism sells. Many in the financial industry have figured out that they can make a lot of money by scaring investors. If you buy into these dysfunctional beliefs, it can crowd out the knowledge that is good for you. To fend off dysfunctional beliefs, we must learn and never forget how wealth is created through the free enterprise system. The free enterprise system has vastly improved our standard of living. Despite all the bad news, free enterprise and capitalism continues to create long-term wealth. Even with a modest amount of money we can own a stake in many of the world's greatest firms. Wealth creation happens nearly invisibly right before our eyes. We call this the guys in a garage effect. Check it out!

Feel free to forward this important video to family and friends. 

Invest intelligently!
John Borger & Scott Buchanan


 

Why Do Investor's Panic?

This is a conversation all investors must have BEFORE inevitable downturns occur. Both fear and greed cause investors to panic. Watch this short video to see just a few of the things that cause naïve investors to panic. Even seasoned investors can succumb if you are not aware of your biases (biases that many in the financial industry prey on).
 
While we own prudent diversified portfolios, the returns are not linear. Sometimes it takes months, or even a year or two of patience before we get a substantial, sustainable upturn. That is one of the reasons prudent investing is very hard. Patience is often necessary, and few investors have the patience to get the longer term returns the markets have delivered over time.

Historically, the negative periods of 5 years or more are SHOCKINGLY low. If an investor could sleep through the drama of a crash, and wake up 5 years later, would they behave differently? Why do investors panic? Under stress, investors relapse and go back to old habits. The hype and the horror from the prognosticators in the financial industry contributes to the stress, and it will NEVER end! They prey on false hopes and make all kinds of empty promises to get naïve investors to do imprudent things and to dupe investors out of their hard earned money.

I will show you examples of the hype and the horror. Greed, fear, and pessimism sells. Some in the financial industry have figured out they can make a lot of money by simply scaring investors.

Feel free to forward this important video to family and friends. 

Invest intelligently!
John Borger & Scott Buchanan


 








disclaimers



Stay Connected
YouTube  Facebook
 

Royal American Financial Advisors, LLCOur website is full of even more videos and eye opening information that we hope will make a real difference in your life. If any of the materials or videos makes a connection with you, attend one of our upcoming movie events or investor educational workshops. If you prefer to meet in person to discuss achieving clarity about your financial future, simply CLICK HERE to schedule an appointment.

 
 
SimplyGreatWebsites.comMyInvestmentCoach.Com Royal American Financial Advisor, LLC  |  Disclosures  |  Business Continuation  |  Form ADV  |  Privacy
27192 Newport Rd. ▪ Suite 4 ▪ Menifee, CA 92584  |  951-679-2065 or 888-294-0648  |  CALIFORNIA RESIDENTS ONLY