PERFORMANCE OF INVESTMENT EXLPERTS

Thursday, January 21, 2010

All investment experts have one thing in common: they are all veritable storehouses of information and knowledge on the economy and the corporate world. However, not all of them have the required analytical abilities, foresight or wisdom to use this information to make the right investment decision at the right time. As a result, it would be difficult to find an investment expert who does not make at least a few major blunders every year. Even great thinker and visionaries have been known to lose their reputations in the stock markets. John Maynard Keynes, the towering economic genius whose ideas gave birth to the IMF , the World Bank and the concept of deficit financing, failed to anticipate or understand the greatest stock market crash in history. He mistook the collapse of the U.S. stock market in 1992 for a “bull point for world prosperity”. However, despite this spectacular and widely-publicised blunder, he had an enviable and consistently successful record as a stock market investor. He not only made himself a fortune of several million dollars, but also deployed the fund of his college in the stock market and multiplied them ten times over. If Keynes could make a blunder, then no investment analyst can possibly hope to be infallible.