Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Paul Farrell~ 10 tips for us irrational investors
Old 01-06-2007, 01:38 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,880
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?

Quote:
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.

http://www.marketwatch.com/News/Stor...ktw&dist=nwhpf
__________________

__________________
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.
mickeyd is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Paul Farrell~ 10 tips for us irrational investors
Old 01-09-2007, 02:57 AM   #2
Recycles dryer sheets
 
Join Date: Dec 2005
Posts: 186
Re: Paul Farrell~ 10 tips for us irrational investors

my new years resolution. not going to try to out guess the market... staying the course in my investment philosophy!


nice post!
__________________

__________________
We should all feel blessed!
wstu32 is offline   Reply With Quote
Re: Paul Farrell~ 10 tips for us irrational investors
Old 01-09-2007, 03:47 PM   #3
Thinks s/he gets paid by the post
frayne's Avatar
 
Join Date: Oct 2002
Location: 19th Hole
Posts: 2,529
Re: Paul Farrell~ 10 tips for us irrational investors

Bingo and give the man a cigar.

In 2007 and beyond, I will only buy no-load index funds

Ride the indexes. With just 10 index funds you can buy into virtually all stocks traded on the exchanges. Consider this question: If you don't need more than 10 funds to capture the entire market, why is over 90% of America's $10 trillion mutual fund market invested in higher cost, lower return actively-managed funds?
Answer: Because the financial industry can siphon off more of your money that way, and their brainwashing machine is incredibly effective at misleading Main Street investors into believing the lie that active management strategies beat indexing. Not true: Between 75% and 85% of actively managed funds fail to beat the indexes.
__________________
A totally unblemished life is only for saints.
frayne is online now   Reply With Quote
Re: Paul Farrell~ 10 tips for us irrational investors
Old 01-09-2007, 07:26 PM   #4
Thinks s/he gets paid by the post
Goonie's Avatar
 
Join Date: Oct 2006
Location: North-Central Illinois
Posts: 3,198
Re: Paul Farrell~ 10 tips for us irrational investors

Quote:
Originally Posted by frayne
In 2007 and beyond, I will only buy no-load index funds

Ride the indexes.
Agreed, me too! 8)
__________________
Goonie is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Are you rational or irrational? mickeyd FIRE and Money 13 12-26-2004 01:15 AM
SWR, terminal values, TIPS, I-bnds & comm paper sgeeeee FIRE and Money 144 02-25-2004 04:35 PM

 

 
All times are GMT -6. The time now is 06:10 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.