Title: 9 Bits of Conventional Wisdom You Should Ignore - CBS News
Headings: 9 Bits of Conventional Wisdom You Should Ignore
9 Bits of Conventional Wisdom You Should Ignore
Content: Photo courtesy of TheCreativePenn on Flickr. Next: Stay Informed
Stay Informed The New Finance: " Ignore the noise." The unfortunate truth is that for most investors, paying attention causes them to make all kinds of investment mistakes as their emotions take over. Investors persistently get it wrong because they pay attention. They tend to buy (high) after periods of good performance and tend to sell (low) after periods of bad performance. They also fail to understand that what they're paying attention to is only information that everyone else already knows, and thus is already incorporated into prices. It's ironic that Richard Bernstein, former chief quantitative strategist for Merrill Lynch once warned investors: " Today's investors find it inconceivable that life might be better without so much information.