Ignore Forecasters At All Costs

The historical evidence shows us that, in the long run, a thoughtfully designed, diversified portfolio of passively managed funds typically beats the performance of all but a few active managers. And while it’s simple to structure such a portfolio, it’s not easy to maintain.

All too often, emotions—such as greed or envy in bull markets, and fear or panic in bear markets—can cause even well-developed financial plans to end up in the trash heap.

Investor discipline gets tested not only by market movements, but by the prognostications of financial “gurus” hyped by the financial media. Their goal is to keep your attention, and they make money selling air time.

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