Robert Reich’s session on Facebook has the worst investment advice I may have ever heard.
Here is a guy I generally admire, but don’t take your investing advice from him.
He starts with a chart that shows you why investing in the stock market has been a bad idea over the last 20 years.
What a pile of hogwash. Few people are unlucky enough, if they have any brains, to invest only at the peaks. I thought he was an economist that knew economics. Or is investing not part of what an economist knows anything about? Maybe John Maynard Keynes was an exceptional economist.
Does Reich know about dollar cost averaging, even if he doesn’t know about Keynes/Graham/Buffet investing? If I had listened to Reich’s kind of advice over the last 20 years, I would be a lot poorer than I am now, and I mean a lot.
Of course, if I had bought only at the valleys and sold at the peaks, I would have been a lot richer, but nobody knows how to do that.
If you fall for what Reich is selling in this video, then maybe he is right, you shouldn’t be investing in the stock market.