If you read Sheena Iyengar’s fantastic book “The Art of Choosing”  you will understand that in areas where we don’t have expertise we should seek advise to make decisions. Given that financial literacy in not taught in schools and most of the people pick investments like clothes, investing definitely fits the above bill.

But a lot of times financial experts have ulterior motives read earning cut from brokerage houses and almost no accountability for their public predictions. Add to that asset prices change daily and plethora of information is dished on our table, we just can’t keep track of how experts have fared.

Warren Buffet said “Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway”

Is all expert advise on financial investments garbage ? – No

They are experts and they can read financial information and make sense of it, however as I noted above they have keep to making predictions to make sure trader keeps buying or selling so that brokers continue to make money. It is a vicious cycle.  There is a concept that quality of your predictions go down when … Read the rest