Auditors project deeper deficits for Obama budget
Every time I see headlines about future budget deficits, I keep
telling myself "that is a weather forecast!" Most folks read the
headline, perhaps scan the first paragraph, proceed to get bummed out
and turn on the NCAA Tournament.
Just drill down into this a bit. The forecast is for a $9 trillion
deficit to amass between now and the next ten years. Ten years!
Ten years ago, we were all worrying about Y2K. Remember?
Buried in the next-to-last paragraph was this little golden nugget. Read this whopper: "Long-term deficit predictions have proven notoriously fickle - George W. Bush inherited flawed projections of a 10-year, $5.6 trillion surplus and instead produced record deficits - and if the economy outperforms CBO's expectations, the deficits could prove significantly smaller."
There is so much ink spilled every day in the financial media that
is essentially nothing more than predictions, or a public relations
spot for something else. Unfortunately many of the PR and predictions
become headlines. Our decisions can be swayed by too many headlines
that are merely predictions or opinions. I've come to the conclusion
everything written by the financial media has an agenda attached to
it. Or said another way, everything written by the financial media is
intended to make you do precisely the wrong thing.
I cannot help but laugh when I see some "expert" interviewed about
the stock market, and the excuses/reasons given why markets went up or
down that day. "The market is worried about inflation." Later the
same week "deflationary fears rattled the market." Look, the market
is not that smart - or that "forward-looking."
Don't get hung up on the Dow Jones. The Dow Jones may not be a
"relevant" yardstick for you to use. After all, it's only 30
stocks...and you might not own ANY of them. And avoid predictions and
projections. It's just a waste of time.
Thomas Mullooly is the owner of Mullooly Asset Management, LLC, NJ Fee Only Investment Advisor, providing guidance for your 401k account. Mullooly Asset is a fee-only alternative to stockbrokers and financial planners.
Tom's popular email alerts help folks to reduce the risks in their portfolios. To learn how to stop making investing mistakes or if you would like a free look at your 401k account at work - or your 403b annuity, or section 457 deferred compensation plan at work, visit www.mullooly.net today!
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