In a world where the stock market often seems as mysterious as the universe itself, comes a reminder that those offering stock advice may not be so different from astrologers. This is what real estate billionaire Roger Akelius recently pointed out in an interview with Aftonbladet (a Swedish newspaper). Instead of following the swift swings of the market, he suggests a method as simple as it is counterintuitive – to ignore the short-term noise and focus on long-term stability.
Akelius urges investors to disregard the quick highs and lows of the stock market. Instead, he recommends carefully selecting stocks from stable industries, such as food or banking, and diversifying across different countries. But the most striking advice he gives is to stick with these selections for at least ten years.
"Blind yourself to individual races and rallies and ignore quarterly reports," says Akelius. He dismisses the traditional approach to following the stock market, which is often marked by short-term trends and speculation. Instead, he emphasizes the importance of patience and trust in the companies' long-term endurance.
But why does Akelius compare stock advisors to astrologers? For many, this may resonate on a deeper level. Astrology, despite its lack of scientific basis, entices with the possibility of predicting the future based on cosmic patterns and symbolism. Similarly, stock advisors may try to forecast market movements based on various indicators and trends, but there is always a degree of uncertainty and speculation involved.
Akelius seems to suggest that there is a certain degree of randomness or unreliability in stock market advice, similar to what exists in astrology. While some advisors may have good intentions and employ thorough analysis, no one can accurately predict the market's movements in the long term.
So what is the solution then? For Akelius, the answer lies in simplicity and long-term thinking. By choosing stable stocks from different sectors and countries and holding onto them for an extended period, investors can reduce the risk of being affected by short-term swings in the market. Instead of trying to time the market or jumping in and out of different stocks, he suggests a strategy based on trust in the companies' fundamental value and their ability to grow over time.
Akelius's advice can be seen as a reminder of the importance of not getting too caught up in the constant stream of news and short-term trends in the stock market. Instead of trying to predict every movement, investors can benefit from taking a step back and focusing on the long-term perspective. Ultimately, perhaps there isn't much difference between consulting a stock advisor and reading one's horoscope – both can provide a sense of guidance, but the real question is how much one chooses to rely on them.