Opinion: Steve Bannon’s father made 3 basic investing mistakes that are so avoidable
Diversify, don’t panic and don’t watch too much TV, says Howard Gold
..“Everything since then has come from there,” Steve Bannon said. “All of it.”
Steve Bannon’s philosophy of economic nationalism holds that global elites have, well, screwed hard-working Americans like his father. That’s why real Americans need to “take their country back” and enact policies like strict border controls, massive deportation of illegal immigrants, huge infrastructure projects to restore blue-collar jobs, big defense spending to “rebuild” the military, and protective tariffs on imports of goods from “predatory” countries like Mexico and China. He also believes the Judeo-Christian West is at war with ascendant Islam.
That dark world view full of conspiracy theories apparently stemmed from his father’s big loss in the shares of a TV and wireless provider.
1. He put all his money in company stock.
2. He sold in a panic near the bottom.
3. He watched too much TV, especially Jim Cramer.
.. During times of panic, I stop looking at my statements and turn off the TV (though I still read MarketWatch!) And I find stock picker Cramer’s ideas useless at best for the vast majority of investors.
.. This is why older, conservative investors like Marty Bannon, who are more susceptible to euphoria and panic, should be in short-dated target funds or old-fashioned growth and income funds, both of which provide income and diversification. Even professional investors don’t know when to sell stocks.
.. Still, like his son, the elder Bannon knows who was at fault for his loss. “”The government created this problem,’” he told The Journal. “’The elites, they got bailed out.’”
Yes they did. But rather than blame the government for losing money in an inherently risky stock market, investors should learn from the many mistakes of Marty Bannon—and not repeat them.