Bob Olstein, Chairman and Chief Investment Officer of The Olstein Funds, has been managing money for over forty years. He says Wall Street has been feeding myths to investors for years to the detriment of the public.
In yesterday's first of a three-part interview, Olstein explained that a good company is not always a good investment.
In today's installment, Olstein says there's another myth that Wall Street has been fostering in the minds of the masses: The idea that the market moves in the direction of major economic indicators.
"Since the Crusades, nobody has ever predicted the stock market with any degree of regularity to profit therefrom," says Olstein.
"There are no trillionaires out there," he says. If anyone could accurately predict it the markets regularly, they would achieve stratospheric returns.
Olstein says investors should focus their attention on things they can figure out.
"Stop worrying about the stock market and where it's going and worry about whether or not the individual companies you are buying the news that are out there," says Olstein.
(Read: Hedge funds move out of shorts with eyes on bull run in markets)
And, says Olstein, there are ways to profit from panics as people try to predict the markets' direction.
To see the examples Olstein uses on how to benefit when the market gets it wrong, watch the video above. Also, be sure to catch tomorrow's final installment of Olstein's interview where he tears down another big Wall Street myth.