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Dan Solin’s three stock market predictions for 2010

I think that you will find the following article about Dan Solin’s three stock market predictions for 2010 very interesting:

His three predictions are:

1.  There will be no end of “financial experts” who will shamelessly set forth their views on what will happen to the stock markets in 2010.   (he has some great examples of predicions by experts made last year and earlier this year – including a prediction by Jim Cramer  Jim Cramer — not one to lack in confidence or flair — that Goldman Sachs (GS) would finish 2008 at $300 a share. Cramer didn’t consider this a mere prediction. It was “an inevitability.”   Goldman Sachs finished 2008 at $84. Its current price is $167.  

2.  Most investors will continue to rely on the discredited pseudoscience of stock market predictions. Their brokers and advisors will tell them they can “beat the markets,” time the markets, pick stock winners and pick superior fund managers. Even though no data indicate anyone has these skills, it won’t deter these “financial pros” from pitching them to trusting and gullible investors.

3.  A growing number of investors will fundamentally change the way they invest.   They’ll understand that they can control only a few things: They can keep their fees low by choosing the right funds; they can focus on their asset allocation; and they can use low-cost passively-managed funds (like DFA) to put together a globally diversified portfolio of stocks and bonds.

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