Editorial Director’s Note: Due to a strict publishing deadline, Charles was unable to include details about a can’t-miss event that’s happening next week. On November 12, Charles and the whole Winning Investor Daily team will be on hand to unveil a revolutionary way for you to work smarter, not harder — and make 100% gains every month! Stay tuned for more from our team this week and next. We’ve spent the last year preparing this life-changing video — and we can’t wait to tell you more! — Jessica Cohn


We’re two months away from a new decade. I’m sure you’ve seen headlines offering predictions of what the stock market would do in 2020.

Investors like to have predictions of where things are going — even when they don’t believe them. I guess they feel that those who make predictions know more than they do.

And as tempting as it is to follow those predictions, I’m here to tell you to toss them in the trash. They are as worthless as yesterday’s newspaper.

You see, the problem with forecasting the outcome of the stock market is that it’s a complex system. It has too many moving parts. That makes it impossible to predict outcomes with consistency, especially forecasting major events.

I’d like to share an example to show you why predictions are a terrible way to invest.

The Great Recession of 2008 was the worst financial period since the Great Depression of the 1930s.

Each year in its December issue, Barron’s polls well-known analysts and gets their one-year forecasts for the S&P 500 Index.

At the time Barron’s polled the analysts at the end of November 2007, the S&P 500 was trading at 1,482.

The lowest prediction was for the index to rise 3%, and the most bullish was a rise of 18% over the next year. Not one analyst predicted the index would close lower.

One year later, the index had plunged to 896. The analysts not only missed predicting the direction of the market, but missed it by a country mile.

Watch my video below. I explain why you should avoid predictions and how you can make money regardless of what’s going on in the stock market.

 

The next time you see a prediction about the stock market, just ignore it.

I’ve been on Wall Street for over three decades, and I’ve seen investors make the wrong financial decisions because they relied on predictions that were plain wrong.

If seasoned investors and hedge fund managers can’t accurately predict the outcome of the stock market, no one can.  And you shouldn’t waste your time following or relying on predictions.

In my Alpha Investor Report newsletter, I focus on three crucial factors — I call them Alphas — when I choose stocks for my portfolio.

My time-tested approach allows me to guide my readers in making lucrative decisions at bargain prices.

I do the hard work and crunch the numbers — you can enjoy the rewards.

Click here to learn more about my three Alphas and how you can join my readers in profitable investments.

Regards,

Charles Mizrahi

Editor, Alpha Investor Report

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