Ric Edelman: In this series we are talking about why you should ignore stock market predictions. Amazingly some of the wildest predictions aren't even based on the stock market; instead they focus on pop culture, one method tracks pop music. This theory says that the Beatles' breakup in 1970 was the sign of a market bottom.
Another says that hemlines predict the rise and fall of the stock market. If women around you are wearing short skirts, the market will rise. But when hemlines go below the knee, prices will fall.
Then over heels, the higher the heel, the higher the market or you can go to the movies. One rule says that the more horror films Hollywood releases, the worst the stock market is going to be.
Oh and here is one for sports fans. The market will rise when an original NFC team wins the Super Bowl, and if the Oakland A's win the World Series, the market will crash. I could go on, the year of the Peg on the Chinese calendar is good for small cap stocks.
MAMS' space launches make stocks rise but re-entry brings stocks back down.
Sounds crazy, right? The crazy thing is that all of these predictions came from researchers and the media then reported on them as news. People believe what they see in the media, some actually invest based on this nonsense.
Don't let it happen to you.