Two types of forecasters exist. Those who don’t know, and those who don’t know they don’t know.
I asked 71 of my associates to pick ten stocks that would underperform the market in the second quarter. Only 19 of them succeeded, meaning 73% of them tried to lose on purpose but couldn’t. Indeed, the average return on the try-to-lose portfolios was 30%, double the market’s return. The lesson: Short-term stock movements are more a function of luck than skill.
Nobody likes rejection. Which is why, over the years, I’ve developed a three-step process to transform situations from hopeless to hopeful.
A good adviser is not an easy role for clients to fill. To do it successfully, to really demonstrate our value, we need to put our hearts and souls into it. Remember: being a human supersedes being an adviser. Sometimes, showing compassion can be the most important thing.