Overconfidence leads investors to believe that they will be one of the few who succeed. It turns out that people who trade the most, presumably due to misplaced confidence, produce the lowest returns.
Tag: investors
CAPITAL IDEAS: Big data: Where is the ‘smart’ money going?
I say that we financial advisors are “supposed” to be smarter, but I’m not sure how true that is.
CAPITAL IDEAS: Fuel for the fire
The next six months may finally give you the returns you were hoping for. But depending on your level of expectations, I doubt it.
CAPITAL IDEAS: Bad movie night
Waterfall declines are typically not the final low; the Dec. 24 low might need to be retested—might. We’ll watch the breadth over the next few weeks to assess if the rally is sustainable or if portfolios need to get more conservative to defend against a retest.