Why do people think investing is easy? For a variety of reasons investors sometimes draw incorrect conclusions regarding investment strategies. In many cases it is difficult, or impossible to know if an apparently successful method was, in fact the cause of the successful, or unsuccessful outcome. Appearances can be deceiving. Consider the hypothetical case of the fraudulent investment newsletter writer. … Read more →
Category: Investing
Investor behavior.
A study done by Dalbar, Inc., a financial services research firm, found that most investors who move in and out of their investments have a much lower long-term total return than those who employ a buy and hold strategy. The study, entitled the Quantitative Analysis of Investor Behavior, examines real investor returns from January, 1984 to December, 2000. Read more →