If insanity is doing the same thing over and over and expecting different results, investors are insane.
The way many investors manage their money seems to perfectly describe Albert Einstein’s definition of insanity: Doing the same thing over and over again and expecting different results. Here’s what isn’t working:
- trying to predict when to enter and exit the markets
- trying to pick outperforming stocks
- trying to find the next “hot” fund manager
- relying on “top mutual fund” recommendations
- using a broker or advisor who claims to have the ability to “beat the markets”
- overweighting your portfolio in certain asset classes, like gold
- relying on the financial media for tips on stocks, interest rates and market direction
Read the rest of the article at US News.