- Irrational behavior, although common, can degrade investment returns over time.
- In order to invest wisely, it’s important to understand where investors often get tripped up.
- Recency Bias is the notion that we often overemphasize recent events over longer-term averages when making decisions about uncertain future events.
Continue reading “Behavioral Finance 101 (Part 2)”
- The rich continue to get richer, where the top 26 richest humans now control more wealth than the bottom 50%, based upon recent research from Oxfam.
- Wealth has the capacity to grow exponentially after reaching a tipping-point, which can lead to a strong concentration of wealth among a small percentage of owners.
- If you can’t beat ’em, join ’em.
Continue reading “Why Invest Forever? (Part 7)”
- Since 1973 the S&P 500® Index has posted considerable gains—over this period the index has averaged over 10% per year in gains after reinvesting dividends, before taxes and fees.
- However, investigating other 45-year periods (going as far back as 1871) leads to a more useful picture of the index’s performance across differing economic environments.
- According to history, it’s better to invest in the index over longer periods in order to increase the likelihood of providing favorable returns and decrease the likelihood of losing money.
Continue reading “Why Invest Forever? (Part 3)”