Topic: How To Invest

What is Pat’s commentary for the week of November 15, 2022

Article Excerpt

Many investors over-emphasize investment predictions as a way to choose investments, especially when just starting out. It’s easy to understand. Following predictions can be easy and fun, like betting on tips at a racetrack or a casino. Investing newcomers may also downplay portfolio balance and diversification. This too is easy to understand. Designing a balanced, diversified portfolio can be tedious and demanding, especially when it’s new to you. It may seem more like work than play. Watch out for implied predictions The investment industry understands the appeal of predictions as marketing tools. It also understands the legal drawbacks of making unqualified predictions to spur investors to buy investments. That’s why most prediction-style investment marketing gimmicks are tailored to sound like predictions of sure-fire winnings. In fact, they are really no more than statements of what might happen or has happened in the past. “We’ve seen stocks like Lady Luck Lithium shoot up from $4 to $40 in a week when they release drilling results…