November 20, 2014

Barry Ritholtz Slams Tony Robbins

From a recent Bloomberg article written by Barry about Tony (who happens to be currently promoting a book providing financial insights):

In a special video on his website from Aug. 6, 2010, titled, "An Important Note of Caution," Robbins essentially told his viewers to get out of stocks. After lots of caveats, he said:
Right now is a time you might want to take some stocks off the table in the stock market. Especially if they are in manufacturing or retail or banking or god forbid homebuilding and housing . . . I would feel bad if I didn’t warn you . . . One of the biggest bubbles in history is blowing up now.
This turned out to be terrible advice.

The day that video was released, the Standard & Poor's 500 Index closed at 1,121.64. Yesterday’s close was 2,051.80. Following Robbins’ advice would have caused an investor to miss a 90 percent gain, a near doubling of value. Some of the industries he recommended avoiding did even better.