Forecasting is very difficult to get right. Whether you look at forecasts for individual businesses, the economy, interest rates or the stock market, you will see a lot of failures.
One year forecasts have led to failure. 10 year forecasts have led to failure. Be very careful about thinking you can profit from short-term stock market gyrations.
In this video, filmed at the Platinum Mastermind in Costa Rica, Charles Mizrahi reminds you of some major market events and trends that no one saw coming.
SOME FAILED PREDICTIONS…
20 years ago, who would have thought that Blockbuster would be totally out of business, eaten up by Netflix? Or what about Circuit City, the consumer electronics store that also went out of business?
If stock market gurus can really predict the future, why did we hear none of them herald these looming failures?
Then there’s Amazon, which is leading one of the biggest disruptions in business history. It’s knocking out sections of the market and getting its customers what they want in 2 days or even just 1 day.
Today, every retail business feels the heat of Amazon breathing down its neck. But, did any stock market gurus predict this back in the 1990s when Amazon was a simple bookseller? No.
Even Walmart, the world’s largest retail business, is battling the competition from Amazon. 10 or 15 years ago, it was widely assumed that a business like Walmart was untouchable.
BE HUMBLE, OR THE MARKET WILL MAKE YOU HUMBLE
If anyone tells you they can forecast the market, spot the future’s biggest opportunities and avert market disasters long before they happen, hold on to your wallet.
No one knows the future. The difference is some people are humble enough to admit it, and others are arrogant.
In stock market investing, you have two choices. You can either choose to be humble, and admit you don’t know the future, or the market will make you humble very quickly.
After getting beaten down every day, you will learn your lesson – or you can choose to learn it right now while you still have your money.