7 Habits of Highly Effective Financial Gurus

Last Updated Jul 11, 2011 9:42 AM EDT


Sure, I know that financial experts consistently fail to pick winning stocks or time the market or long-term interest rates. And sure, I'm well aware that I don't possess any predictive skill that makes me better than those claiming to be gurus. But that doesn't mean I haven't entertained a fantasy or two of being one of the famous stock pickers you see on CNBC.

Though it might sound immodest, if I were to become a financial guru, I'd be the best. Why? Because I've studied the best, and from my observations have compiled a list of the seven things that would make me one of the most sought after financial geniuses.

Here's how I would pull ahead of the guru pack and render talking heads, like Mad Money's Jim Cramer, yesterday's news. Perhaps your guru is using some or all of these techniques to get you to believe he is smarter than the market

#1 Come across very sure of myself
Unlike the poor weather forecasters and sportscasters who have to answer for their picks almost immediately, I'll have the luxury of making my forecasts knowing that no one will remember what I actually said, and that there are no organizations that track my picks. Without accountability, I can afford to be cocky. And I'll be sure to not do anything stupid like appear on Jon Stewart's show.

Note: image from onlinecrystalball.com.
Turn the page to see how I would forecast.
  • Allan Roth On Twitter»

    Allan S. Roth is the founder of Wealth Logic, an hourly based financial planning and investment advisory firm that advises clients with portfolios ranging from $10,000 to over $50 million. The author of How a Second Grader Beats Wall Street, Roth teaches investments and behavioral finance at the University of Denver and is a frequent speaker. He is required by law to note that his columns are not meant as specific investment advice, since any advice of that sort would need to take into account such things as each reader's willingness and need to take risk. His columns will specifically avoid the foolishness of predicting the next hot stock or what the stock market will do next month.

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