Mind Games: Ignoring The Noise – Market Predictions
Market predictions are intriguing, especially when they’re extreme and use alarming language to grab our attention. However, we must be cautious about their potential subconscious influence, which can lead to hasty and harmful decisions.
Here’s why influential predictions can be problematic:
- Stirring Up Emotions: Extreme predictions often trigger fear and concern. These emotions can cloud our judgment and lead us to make impulsive decisions based on sensationalism rather than facts.
- Boosting Credibility: Those who make extreme predictions may gain undue credibility, particularly if they’ve made accurate predictions in the past. However, it’s crucial to scrutinize their track record and motivations.
- Selective Data: Extreme predictions often present data or arguments that seem convincing. However, they may cherry-pick information to support their narrative, neglecting alternative viewpoints.
When encountering such predictions, it’s essential to take a step back and ask, “What’s not being said?” Think critically and consult with a trusted advisor to ensure you’re considering a well-rounded perspective rather than just the prediction of the day.
By Anthony C. Williams, CWS, ChFC, MRFC, CLU | Investment Advisor Representative | President & Founding Partner of Mosaic Financial Associates & Orthopaedist Advisory Group | Securities and advisory services offered through Cetera Advisors LLC, Member FINRA/SIPC, a broker/dealer and a Registered Investment Advisor. Cetera is under separate ownership from any other named entity.
©The Behavioral Finance Network. Used with permission.