- The number of analysts is declining, stocks don’t react to earnings nor news anymore, and the underlying economic environment is rigged.
- However, as investors, we have to always look at risk and reward as there is always a way to profit.
- Protecting yourself from market ignorance doesn’t even cost much.
I would define a dumb investor as one who doesn’t think about risk in relation to reward, and therefore I fearlessly say: the majority of investors are behaving in a pretty dumb way.
This is a heavy statement, especially considering markets have performed nothing short of spectacularly in the last 8 years. As evidence, the S&P 500 is up three-fold since 2009 and continues to strongly march ahead. More →