I recently saw an e-mail from a random firm that essentially stated that the markets were going to crash and to “click here” for the one investment that you need to protect from this big crash.
Please do not fall for this garbage. Anyone can send and e-mail, be on TV, the radio, in a conversation to sell fear and point to the one investment to “save” you. Don’t believe it.
Please reach out to a legit investment professional with significant experience to take a look at it for you. There may be a much better option to consider or at least may protect you from making a huge mistake in some hyped up garbage that was blindly blasted to the masses.
As an investment professional, I receive e-mails from so many different investment firms on a daily basis. A good number of them are legit e-mails with pertinent information, but some I’ll know they are junk right away. Some are blatantly obvious, others are just sales tactic focused.
Sales Tactics – Yuck!
The sales tactic ones are usually pushing investments that recently did well in the recent market environment. It might be a defensively managed fund that did really well last year as the markets were broadly lower. This investment should have done well in a down market, that’s what it’s supposed to do. What happens when the market rallies? It probably drastically underperforms. Again, buying high (after it protects value in a down market) and selling low (when it underperforms after a market rally) is a horrible investment strategy.
Then there are the investments that did really well in an up market (think growth stocks two years ago out of the pandemic). I was consistently pushed towards aggressive growth strategies by many people, including investment firms, financial advisors and clients. Again, this was after the huge rally in growth stocks not before it. Sure enough, growth stocks started to severely decline from their highs when everyone wanted it (some declined over 50%). After the big selloff? I’m not hearing anything from anyone about the need for high growth companies, even though now may be a better time than when everyone wanted them.
Just remember, after a part of the market does really well or really poorly, you’ll hear about the amazing investments that you need that just performed really well recently. They’re just selling you the hype. Please don’t fall for it.