Whenever the market tanks, the financial media goes into overdrive, stoking fear and anxiety.
This headline on CNBC is typical: Cramer feels ‘powerless’ after Fed hike, tells investors to buy gold.
There’s no evidence Cramer or anyone else can predict the direction of the market.
There’s also no evidence that Cramer or anyone else knows whether gold will increase or decrease in value in the short or long term.
Gold and other commodities should be part of a diversified portfolio.
You should be skeptical of advice telling you to dump stocks and overweight your portfolio in gold.
Instead, focus on factors you can control. Here are some of them:
- Your asset allocation (
of your portfolio between stocks and bonds) division
- Broad diversification of your holdings
- Keeping costs and fees low
- Deferring and eliminating taxes, when possible
Ignore anyone predicting anything. They could be right or wrong.
If they’re right, it’s because they got lucky.
Don’t rely on luck to meet your retirement goals.