About an hour ago, the Federal Reserved tapered (it reduced its purchases from $85 billion per month to $75). Most economists predicted that there would be no taper.
Last month, the ECB lowered the interest rate. Most economists predicted that it would remain intact.
These days, my decisions aren’t the least bit influenced whenever I hear something like “the consensus among economists is…” and guess what: I’m an economist, at least that’s what it says on my degree
As an economist, I can assure you that pretty much anyone who is at least reasonably intelligent and willing to think for him or herself can make better financial decisions than economists.
For example, throughout my career as an entrepreneur and an investor, I’ve come to the conclusions that a lot of the things I learned during college are either irrelevant or downright wrong.
I gradually became better and better as an entrepreneur/investor through trial and error, my education as an economist had practically no influence whatsoever.
Financial planners, brokers, whatever.
A lot of these people are *very* good at using fancy words to hide the fact that for the most part, they are utterly clueless.
Don’t make the mistake of blindly trusting them and their predictions.
In fact, this post is yet another argument in favor what I wrote two days ago:
That can and should be extrapolated because quote frankly, I don’t believe in predictions. Domaining predictions, financial predictions, you name it.
You don’t have to take my word for it.
In fact, please don’t.
Just try this experiment:
Step 1) Pick let’s say 5-10 random stock market gurus.
Step 2) Write down their predictions
Step 3) Keep track of the things they got right and the things they got wrong
That’s all you have to do and I assure you that you will think not twice but ten times before trusting a prediction in the future.
So, as a conclusion: what can domainers learn from economists?
Well, economists usually aren’t very good at teaching you what to do but by observing most of them, you’re guaranteed to learn a thing or two about what *not* to do