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Take Online Investment Advice with a Grain of Salt

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In “Hey investment cranks, The Internet Never Forgets,” Barry Ritholz gives a brief overview of the history of investment advice in the media. There was a time when people used to invest on their own and for the most part had little access to what others were doing unless they got advice in person. Later, a few media giants presided over investment advice and acted as gatekeepers. Then there were message boards where strangers could offer each other advice. Now, anyone can publish investment advice online:

“When it comes to investing, the Internet has created a huge assembly of commentary of dubious value. There is gold among the dross, but for the most part it is a cacophony of cranks and gurus.”

Ritholz discusses those who predict crashes and other terrors only to have things not go as they foretold. Some of these people are still considered experts even though it is quite easy to find their erroneous predictions online. He admits to making errors of his own but faults those who use fearful predictions as “an aggressive, destructive form of marketing.”

What does this mean for you? This means that while you have access to a chorus of opinions on investing, you would do well to take these things with a grain of salt. You can also search online to find out if the latest highly recommended expert has made outlandish predictions in the past before you decide to follow the advice.

And beyond that, you can make an appointment to see a local Fee-Only financial advisor who will work with you personally. Those who give advice online may not mean you any harm but they also have not met with you one-on-one to hear about your financial goals.

When you work with Clarity Financial Planning, and you can expect unbiased advice on all aspects of your financial situation as you enter into a long-term relationship with a professional focused on protecting your assets and guiding you towards the future you deserve.

 

Photo courtesy of #WOCinTech Chat