Investing: Be Cautious About Newspaper Tips
| Money : Investing Some people make the mistake of thinking that because they read a recommendation in the newspaper to buy, sell or hold a share, that recommendation will end up correct! The truth is that no-one really knows how a share will go, and that's both the peril and in some ways the attraction of the market. If you track 1,000 shares in all the companies that are recommended by newspaper pundits over the course of the year you will see that on average they probably don't outperform the market across them all. Therefore don't act on recommendation from pundits alone. Many people have bought shares on the basis of a tip off in the paper only to be bemused as the company share price loses 50% of its value in a few months, for example. The pundits are exactly that - there is no guarantee of returns in the stock market which is why you should take your time to do your research and not trust the instinct of newspaper tipsters!
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