Enjoy the sense of satisfaction but beware the risks of overconfidence before stocks turn down
Our biggest stock market risk right now is the cockiness of the high-flying investor. Stocks have delivered fantastic returns this year, and over the past five years as a whole. Even laggards like utility and pipeline stocks have joined in the fun.
A: I’ve been a finance professor at the Ivey Business School for almost 38 years. My research has been in capital markets including stocks and bonds. My new book grew in part out of research for my previous book , Q: You say in the book that investors don’t act rationally. Can you give us a few examples of irrational investor behaviour that you see happing now?
Third, we have a bias to action when sometimes it better to do nothing. Knowing when not to act, such as avoiding panic selling when markets decline, is known as masterly inactivity. As Vanguard founder Jack Bogle once said, “When you hear news that moves the market and your broker calls up and says, ‘Do something,’ just tell him my rule is ‘Don’t do something, just stand there!’”
Q: Social media has changed the investing ecosystem dramatically by bringing us new ‘influencers,’ some of whom are selling their own systems for investing or, worse, trying to defraud people. What’s your take on how social media affects investing? A: Slim to none. The one constant through investing history is scammers. Like Bernie Madoff, the biggest Ponzi Scheme fraudster, they know how to play on your emotions. Always remember: If something sounds too good to be true, it probably is!
Carrickmoneynewsletter Personal Finance Personal Finance Canada Savings Strategy High Interest Saving Rob Carrick Personal Finance Newsletter Rob Carrick Personal Finance Personal Finance Planning Personal Finance Advice Canada
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Enjoy great food and wine overlooking the water at View Restaurant + BarYou don’t need a special reason or occasion to dine at this favourite local spot, known for its incredible dishes, scenic water views, and welcoming atmosphere
Read more »
Pumpkin Spice Lattes: Enjoy the Flavor Without the Sugar OverloadThis article explores the calorie and sugar content of popular pumpkin spice lattes from Starbucks and Tim Hortons, highlighting the potential for excessive sugar intake. It also discusses the nutritional benefits of these drinks, such as calcium and protein.
Read more »
Nine red wines from Argentina to enjoy nowMalbec may be the signature Argentinian vintage, but the country’s wine makers have much more to offer
Read more »
If You Like Dogs More Than People, You May Enjoy These 82 Heartwarming MemesThe “DogMemeJunkie” Instagram page is dedicated to hilarious, wholesome and downright adorable dog memes.
Read more »
If You Like Dogs More Than People, You May Enjoy These 50 Heartwarming MemesThe “DogMemeJunkie” Instagram page is dedicated to hilarious, wholesome and downright adorable dog memes.
Read more »
Enjoy Easy and Delicious Meals this Back-to-School SeasonSafeway welcomes the exclusive line of simple and gourmet RICARDO food products to Western Canada.
Read more »