To kick start 2012, financial publications and gurus released their hot list of top stocks to buy late last year. The articles and gurus can be very persuasive. They use what sounds logical and reasonable to argue: “We know which stocks you should own to get above average returns.” And, many investors, middle class or otherwise, are inclined to act on the hot lists, as they do every year.
The average investor is led to believe that since we have wonderful technology, the Internet, and access to unlimited facts and statistics, investing is made easier and that we can research the stock tips before investing. The reality: Technology makes investing more difficult, complex, and confusing, not simpler. Can the average investor understand or even explain what all the information means?