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Scary Headlines: Financial Advisors' Daily Digest

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By SA For FAs :

​All investors are looking for astute analysis, but in order to appreciate it when you see it, it is worthwhile considering what bad analysis looks like. In an important "final thought" to his " Weighing the Week " column, Jeff Miller does just that, critiquing analysts who make spurious connections between long-term economic trends and specific portfolio recommendations. I've seen scary headlines to this effect offering "sell now"-type advice in 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017 up until today. Even though such analysts had all kinds of valid concerns, investors following the serial bad advice have missed out.

I myself have been known to express my worries over economic trends - as I did a short time ago in this podcast , for example. And yet I find myself irked when I see serial worrywart headlines from other writers. Can this seeming contradiction be reconciled? I think so. When seeing representative articles from this genre, I ask myself what manner of benevolence prompts a writer to offer ever fresh warnings of doomsday. Wouldn't one such article fulfill one's civic obligation? Yet the articles come again and again and again - and they're not infrequently frightening. What's going on with these analysts? Jeff hits the nail on the head. I quote in pertinent part:

The point is a critical reader must understand not just what an author's main point is, but what is his interest in writing the article. This is not to say that someone with a point of view and a business interest should be ignored. Such a combination often prompts very good content. But understanding these elements can help you evaluate the analysis. Is it tendentious or is it instructive? Strong financial communicators educate; salesmen agitate.

Please share your thoughts in our comments section. Meanwhile, below please find links to other advisor-related content on today's Seeking Alpha. Also, Seeking Alpha has added podcasts to its repertoire - from me and others; for a weekly "best of" digest, follow SA Multimedia ; you can also follow my feed on iTunes .

  • John Lohr offers his take on last Thursday's SEC meeting establishing rules for advisors.
  • Bogumil Baranowski: How you invest depends on your investment horizon .
  • Russ Thornton: Understand the uniqueness of your personal financial situation.
  • Gary Mishuris, CFA considers the optimal level of portfolio concentration .
  • Janus Henderson Investors offers advisors ideas on creating an extraordinary client experience .
  • For more content geared to FAs, visit the Financial Advisor Center .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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