Although it’s April Fool’s Day, this post is not a joke. My favorite mutual fund company Vanguard started a blog at vanguardblog.com. A team of five investment and communication professionals write for the blog. I have high hopes for it but I wish it were better. In one article, Forecasts and second marriages, Craig Stock told us
"The lesson for investors, I think, is to assume that forecasts — no matter the source — are likely to be wrong."
The implied message is don’t listen to pessimistic forecasts. In another article, The deal of a lifetime?, John Ameriks said
"At the risk of giving away my age, I’ll tell you that that suggests buying stocks right now could be the deal of my lifetime."
Forecasts are likely to be wrong. I know that. It applies to both bullish and bearish forecasts. Forecasts are also likely to be right. How likely and which forecasts are the questions. Buying stocks right now could be the deal of a lifetime. Yeah, it could be. It could also lead to a number of other scenarios. It either *is* a deal of a lifetime or it isn’t. If you don’t know, say you don’t know.
What exactly do you do with something that could be the deal of a lifetime, knowing that forecasts are likely to be wrong? Nothing. They are just wasting your time. It’s unfortunate one cannot expect true opinions and analysis from a corporate blog.
Refinance Your Mortgage
Mortgage rates hit new lows. I saw rates as low as 3.25% for 30-year fixed, 2.625% for 15-year fixed, with no points and low closing cost. Check mortgage rates in your state.