Expert Contributor by Brendan Magee Inevitable Wealth Coaching
Investors Being Dealt a Losing Hand, Every Day Everybody knows the odds are in the casino’s favor, not the gamblers. The gaming industry though goes to extraordinary lengths to create the illusion that the gambler has more than a reasonable chance of winning and winning big. Huge billboard ads display winners holding up huge checks. Television commercials show winners telling you how good it felt to win big. However, we know those casinos aren’t losing money, the gamblers are. Just like the casino, the investment industry goes to great lengths and expense to create the illusion that investors aren’t playing a loser’s game. Every mutual fund company and every brokerage firm proudly promotes the huge rates of returns their investment products generate. All you have to do to get your share is invest in their services and products. So, what are the services these brokerage houses make available to you? One, they can help you identify good stocks to invest in, or they can tell you when it’s the right time for you to be in or out of the stock market. They can even help you to identify who the most brilliant fund managers are. Sounds like a great deal, but in actuality, it’s a losing hand and the investment industry already knows it. They just hope you never find out.
In order for someone to be successful with stock picking, market timing and track record investing, they have to have the ability to consistently and reliably predict the future. Everything that is predictable about the market has already been factored into it. This is the illusion the investment industry goes to great lengths to hide: That somehow, some way, they have the ability to see into the future and know how things will go. Obviously, no one can reliably and predictably foretell the future. If they could, they wouldn’t be doing it for you. However, when investors make investment decisions based on an analysis, a track record or any type of recommendation, they have fallen for that illusion. In truth, they are not investing but they are actually gambling and speculating with their money. This blind spot is one of the reasons that, according to the 2020 Quantitative Analysis of Investor Behavior Report, investors have needlessly “forfeited 40% of the returns that have been available to them over the last 35 years.” Every day, investors and their families live with the consequences of playing a losing hand. The investment industry hopes you never find out the game that they have you playing. The only way to be on the winning side is by asking a completely different set of questions, starting with asking for the truth. NS
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Inevitable Wealth Coaching Empowering Investors
Newtown Square Resident
Brendan Magee
Newtown Square’s Resident Investor Coach 16
Newtown Square Friends & Neighbors
February 2022
Investor Coach
