We all like to read forecasts of what the future holds. But, in the case of the outlook for commodity prices is following the lead of one commodity forecaster or another just blind faith?
Over at Cullen Roche’s excellent Pragmatic Capitalism blog, Cullen illustrates a point about the multitude of articles about how bearish George Soros is on a particular asset market. Cullen goes onto say how this could potentially lead individual investors into trouble.
In all seriousness, the key lesson here is that we need to be very careful about how much we read into news headlines about market gurus. It’s very easy to get swept up in the idea that a wealthy investor knows more than the rest of us and that we should follow their disclosed moves as reported and after the fact. The financial media loves to use big names to grab headlines and page views. But in many cases you’re not getting the full story about what this investor is doing. And following their supposed positioning could lead to bad decisions and unnecessarily poor performance.