We tend to think in the short term, but it hampers our ability to invest intelligently.
In order to invest successfully, you need to be skilled at decision-making. This is true if you are a do-it-yourself investor or if you rely on recommendations from your financial advisor.
The many decisions you must confront include whether or not to engage in stock picking, market timing and attempts to select an outperforming fund manager who tries to “beat the index.” There is, however, an alternative. You could be an “evidence-based investor” and capture the returns of the global marketplace, less the low management fees of index-based funds.
Read the rest of the article at US News.