It was some time in 2011 if I remember correctly. I had tuned to my local NPR station at lunch time. A financial advisor couple was getting interviewed. They had just released a new book on financial planning. It was a pleasant discussion. They seemed genuine. They also appeared … [Read more...] about Don’t take investing advice from people you don’t know!
InvestorBehavior
Don’t fall for steady returns
Why everyone and their grandmothers don’t get rich investing in the stock market? It sounds straightforward enough to invest. All one has to do is buy an appropriate market index fund (or ETF) and hold it for ten or twenty years (the well-known buy-and-hold strategy). If you … [Read more...] about Don’t fall for steady returns
Real investors don’t fear a recession
Recessions and expansions are normal phases of a business cycle in modern free-market economies. A recession occurs when the economy stops growing – instead, it contracts. This happens from time to time – the economy grows in fits and starts. The normal state of an economy is … [Read more...] about Real investors don’t fear a recession
It’s not healthy to check stock prices every day
If you check your stock portfolio every minute the market is open, you are setting yourself up for failure. Even every day is not good for your portfolio’s health. Perhaps every week is too frequent. Two reasons why this is so: Every-day price changes are random and carry no … [Read more...] about It’s not healthy to check stock prices every day
Most investors underperform the stock market
The bad news is that we, the individual investors, collectively don’t do so well when investing in stocks. The good news is that most of this underperformance is due to our own behavior and therefore can be fixed. Let’s first look at the evidence of our underperformance over … [Read more...] about Most investors underperform the stock market