The stock market recently went through another correction. During the last quarter of 2018, media outlets were happily giving bad news day in and day out. At its worst, the market fell almost 3% on Christmas Eve alone. From all-time highs in September to the Christmas Day low, the market had taken a nearly 20% tumble. As usual, many investors agreed that it was finally a good time to panic.
The other day I saw a headline “Cancer overtaking heart disease as leading cause of death in many states”. The headline grabbed my attention and I continued to read to see if my state was one of the states where c
Since 2009 investors have been well rewarded for owning equities. One surprising characteristic of this bull market has been the low volatility many investors have experienced. We really haven’t seen much of a pull back until the end of September of this year.
GRAND ILLUSION #4: EQUITIES ARE TOO RISKY AND SHOULD BE AVOIDED
Grand Illusion #1: Market Timing
The first “grand illusion” of investments is market timing. Market timing presupposes that those who are smart enough, or follow the markets closely enough, can figure out both when to get into the stock market and when to get out. The goal is to miss the pain and experience the gain.
Investment Fiction: Welcome to the Grand Illusions