Paul Farrell~ 10 tips for us irrational investors
94,000,000 passive investors, he says. I thought that the number was much lower, but what do I know?
3. I will never again try to predict our unpredictable markets
Markets are inherently unpredictable, ruled by unruly mobs of irrational investors. In 2007 I will listen to the warnings of Wharton Prof. Jeremy Siegel, author of "Stocks for the Long Run." He studied all the big market moves between 1801 to 2001, and discovered that 75% of the time there was no rational explanation for major moves up or down in stock prices.
I pretty-much agree with all 10 of these, but I thought that this one zeroed in on what I think generates wrong investment decisions for most folks.
Part-Owner of Texas
Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx
In dire need of: faster horses, younger woman, older whiskey, more money.