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Sunday, January 3, 2010

Daniel Solin's Opinion on Gurus

www.bloggerspayback.com

Daniel Solin's is a Senior Vice President of Index Funds Advisors,
Inc. (ifa.com). He is the author of The Smartest Retirement Book
You'll Ever Read (Perigee Books, 2009). His other books include
the New York Times bestsellers The Smartest Investment Book
You'll Ever Read and The Smartest 401(k) Book You'll Ever Read.
See SmartestInvestmentBook.com. I read an article that he wrote
for dailyfinance.com, that I found very interesting, specially the
following:

"There are no financial gurus out there.

Generations of investors have devoted a lot of time and money to
the search for a guru who can guide them to financial success.
But here's the cold harsh reality: They don't exist.

William Bernstein said it best in his latest book,  
The Investors Manifesto, Preparing for Prosperity, Armageddon
, and Everything in Between: "The reason that 'guru' is such a
popular word is because 'charlatan' is so hard to spell."

We now know Bernie Madoff was no guru. But many of the most
sophisticated investors in the world thought otherwise. Wealthy
investors thought hedge fund managers had found the holy grail:
huge returns with little risk. Since 2006, 117 major hedge funds
at 71 fund families have imploded. Even CNBC's Jim Cramer is
wrong about as often as he is right. And "Dr. Doom", Nouriel
Roubini, may have been right about the economic meltdown in
2008, but he has been terribly wrong about the market recovery
in 2009.

Financial "experts" love to give their opinions about all aspects
of investing: When to buy and sell; what stocks are hot; whether
gold is a good or bad buy ... the list goes on. But the odds that
their predictions are correct are about the same as random choice.
Investors who rely on such financial advice risk financial failure."

 

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