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: 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. Investors find it hard to believe that ignoring the vast majority of investment noise might actually improve investment performance. The idea sounds too risky because it is so contrary to their accepted and reinforced actions." Photo courtesy of Adrian Pursur on Flickr. Next: You Get What You Pay For
You Get What You Pay For
The New Finance: "