How Investing Is Different Than Picking A Car



I'll take this one step further and say that fundamentals aside, past winners are often the most likely to be future losers in the investing landscape (and vice versa). Winners become more expensive as the trade becomes more crowded while losers become less expensive and sentiment collapses as investors leave. This major psychological discrepancy makes investing different than almost everything else you encounter on a day to day basis.

To provide a real world example, investors often look at the last 3 or 5 year performance when selecting a mutual fund for their 401k. Ironically, picking the recent winners is more likely to lead to near term losses.

Comments

  1. take a look at the marking time desk to look what your display could be seeking out when they mark your paintings and the way the marks will be assigned. this may assist what to cognizance on. If there may be no marking time table test the project query to peer if the facts is there.

    ReplyDelete
  2. Interesting statistics, I would never thought that cars from 2005 are still in the top in 2014. Way to go! :)

    ReplyDelete
  3. Great Information,It Has Lot For Stuff Which Is Informative.I Will Share The Post With My Friends.

    ReplyDelete
  4. Really I Appreciate The Effort You Made To Share The Knowledge. This Is Really A Great Stuff For Sharing. Keep It Up . Thanks For Sharing.

    ReplyDelete
  5. Thank you so much for sharing these! The looks are fantastic and the shots are spectacular! You have such a talent. I'm a student and of course, I want to have money and I decided to work as a freelance writer exemplification essay examples on paper writing service. Any student who orders custom papers from Exclusive-Paper.com will have their project completed by a highly professional and extensively experienced writer.

    ReplyDelete

Post a Comment