| | | Apr. 17, 2015
Are You Hot or Not? For Investors, It’s Hard to Tell
blogs.wsj.com
.
Being on a hot streak is one of the most dangerous things that can happen to a professional or individual investor.
Now that the S&P 500 has risen 226% since March 2009, including dividends, stock investors also should worry about how being proved right can undermine their ability to imagine being wrong.
.
No wonder the economist and investment strategist Peter Bernstein, who died in 2009, was fond of saying, “The riskiest moment is when you are right.”
In much of life, doing things right over and over again is a sign of skill; expert musicians, for instance, rarely hit a wrong note. And the skill of one professional musician doesn’t make it harder for the others to be equally expert. |
|
