The only really sensible investment advice I know of came from Will Rogers, who is alleged to have said:
You buy your stock.
When it goes up, sell it.
If it don't go up, don't buy it.
Advice I just don't get includes the following:
- People are very optimistic; so stocks will decline.
- People are pessimistic; it's a good buying opportunity.
- Stocks go down in September and October.
- You can't beat the market; it's all priced in.
- You've got to do your homework.
- Go with the momentum.
- The Dow is 5½ points below Fair Value.
- Sell in May and go away.
- Cash is king; stay liquid.
- If you're out of the market a few days, you can miss the run-up.
- The trend is your friend.
It's a random walk.