Ignoring the Noise (Market Predictions)
Ignoring the Noise (Market Predictions)
Stock market predictions can be quite alluring. Especially those that are extreme and/or use fear-inducing images.
Such predictions can influence our opinions and ultimately our decisions.
For that reason, it is important that we protect ourselves from their subconscious, and potentially damaging, influence.
Characteristics of Believable Market Predictions
Predictions that are believable do not mean they will be correct. Believable simply means we are likely to believe them to be true.
The reality is that there are many more believable predictions than accurate ones. The trifecta of a believable forecast includes:
- Wording that activates concern and/or fear
- Lends credibility to the individual making the prediction (popular individual)
- Provides a specific data point to support the given prediction
What We Should Do
When we read predictions that seem believable, we need to ask ourselves, “What isn’t being said?”
In many cases, the individual making the prediction has made similar predictions for a long time. Often those predictions have been wrong, resulting in a poor track record.
Whenever a prediction is made that gets your attention, it is important to think critically. Or better yet, ask me what information might be missing.
My preeminent role is to guide you toward your financial goals. This includes ensuring you consider all information, and not just the “believable” prediction of the day.
– Kaleb Paddock, CFP®
Learn More
You can learn more about Ten Talents and Kaleb Paddock, a financial advisor based in Parker, Colorado, by clicking here.
Kaleb can be reached at (720) 710-0939 or kaleb@tentalentsfp.com.
You can check out the Ten Talents YouTube channel by clicking here.
About Kaleb
Hi, I’m Kaleb. I’m the Founder of Ten Talents and I’m blessed to be regularly featured in CNBC, MONEY, and Business Insider personal finance articles. I’m a CERTIFIED FINANCIAL PLANNER™ (CFP®) Professional based in Parker, Colorado and I’m a fiduciary and fee-only advisor.
Put simply, this means that I don’t sell you financial products, I act in your best interest at all times, and my pricing is clear and easy to understand.
My Client are Eyeing Retirement Decisions
My clients are eyeing retirement decisions, often work at technology companies, or have experienced a sudden money event (inheritance, home sale, business sale, stock IPO, gift).
I love bringing confidence and clarity to your financial situation and I’m passionate about helping you take control of your financial future.
You can learn more about me and Ten Talents by visiting my website: www.tentalentsfp.com.
©2022 The Behavioral Finance Network.
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