Friday, September 05, 2008
Can you trust the financial pages of National Newspapers?
Since the dawn of mankind there have been get rich schemes. The financial pages of the national pages abound with rich succesful people, the implication being that you are the only one not making any money.
Many a time the city editors encourage you to invest in a fund or company or asset that is high risk, has peaked in value and is on the way down.
Some examples from the last few years.
1 Invest in gold...it hit a high in April 2008 and the price has retreated
2 Buy to Let Property. Too many unwanted flats, falling house prices.
3 Bubbles in India & China in 2007
Possibly the worst re-occurring offence is to give tips on company shares as though they were horse racing tips (Thanks to Lawrence Gosling of Investment Week for that analogy)
Have a broad based portfolio of assets not linked to the rise of fall of risky asets