News

Why the best investing move is usually…not to do anything

[ad_1] When you’re stuck in bumper-to-bumper traffic, do you constantly move from one lane to the other? We all do this, even though studies have demonstrated that it usually doesn’t get us where we’re going any faster. It just feels better to do something. There’s a now-famous study in which researchers found that in soccer, goalkeepers almost always dive left or right when facing penalty kicks, even though they would stop more shots if they simply stood still. The study’s authors suggested an explanation for this behaviour: because the norm is to dive one way or the other, goalkeepers would feel worse if they surrendered a goal by staying in the centre of the net. The fans would probably feel the same way: “What’s he doing just standing there?” These are examples of action bias: the tendency to resist doing nothing, even if an action is counterproductive. This bias is behind much of the criticism of buy-and-hold investors, especially indexers. It’s not hard to understand why. In almost everything we do—excelling at our jobs, learning a new language, getting in shape—it’s obvious the more time we spend on the activity, the better we perform. It goes against human intuition to accept that the opposite is usually true when it comes to investing. In most cases—assuming you begin with a sensible strategy—the more changes you make to your portfolio, the worse your performance will be. Our action bias is especially acute during periods of economic turmoil: investors who stay the course are mocked forfiddling while Rome burns, yet they usually outperform more active traders over time. As the psychologist and Nobel laureate Daniel Kahneman writes in Thinking, Fast and Slow, “It’s clear that for the large majority of individual investors, taking a shower and doing nothing would have been a better policy than implementing the ideas that came to their minds.” I would argue that investors who resist the urge to tinker with their portfolios are hardly guilty of inaction. Building a diversified portfolio with long-term targets—and rebalancing that portfolio, even when it’s emotionally difficult to do so—is the opposite of doing nothing. It’s executing a thoughtful and robust investment plan with discipline. Investing shouldn’t be exciting. If you want excitement, pick another activity—maybe practicing yoga, or writing haiku or playing the ukulele. Dan Bortolotti, CFP, CIM, is a portfolio manager with PWL Capital in Toronto. He works with clients to combine investment management with long-term financial planning. He also promotes investor education through his blog, articles and podcast. This article was excerpted from Reboot Your Portfolio: 9 Steps to Successful Investing The post Why the best investing move is usually…not to do anything appeared first on MoneySense. [ad_2] Source link

Why the best investing move is usually…not to do anything Read More »

*HOT* Kid’s Classic Clog Sandals only $5.10!

[ad_1] Whoa!! Hurry and score this amazing deal on these Kid’s Classic Clog Sandals! Amazon has these Kid’s Classic Clogs Sandals for just $5.10 when you use the promo code 705SO38Z at checkout! Choose from five color options. Sign up for a free trial of Amazon Prime to get free two-day shipping (and possibly one-day or same-day shipping!) with no minimum. If you’re not sure Prime is worth it, read this post for some helpful info to help you decide! And don’t forget you can sign up for Swagbucks to earn free gift cards to use on Amazon deals! Thanks, Midwest Money Saving Mommas! [ad_2] Source link

*HOT* Kid’s Classic Clog Sandals only $5.10! Read More »

Amazon to stop accepting Visa's UK-issued credit cards over high fees – Reuters

[ad_1] Amazon to stop accepting Visa’s UK-issued credit cards over high fees  Reuters Amazon to stop accepting Visa credit cards issued in the UK, citing high fees  CNBC Amazon to stop accepting UK-issued Visa credit card payments  Sky News Amazon to stop accepting Visa credit cards in UK  BBC News Amazon says it will stop accepting UK-issued Visa credit cards on January 19th  Engadget [ad_2]

Amazon to stop accepting Visa's UK-issued credit cards over high fees – Reuters Read More »

Women’s 2-Piece Jogger Sets only $18.79 + shipping!

[ad_1] These Jogger Sets are so cute! Zulily has these Women’s Jogger Sets for just $18.79 right now! These are so cute and look so comfy to lounge around in! There are several fun colors to choose from. Shipping starts at $5.99. But if you place one order today, the rest of your orders will ship for FREE through 11:59 p.m. PT tonight! [ad_2] Source link

Women’s 2-Piece Jogger Sets only $18.79 + shipping! Read More »

Polynion

Binance Prediction

Metamask

papamiaspizza.com

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

RAJANAGA99

prediction market

prediction market

prediction market

prediction market

prediction market

prediction market

prediction market

prediction market

prediction market

prediction market

prediction market

prediction market

prediction market

prediction market

prediction market

prediction market

binance prediction

indodax prediction

bybit prediction

bitget prediction

okx prediction

tokocrypto prediction

metamask prediction

pintu prediction

kraken prediction

xe prediction

kucoin prediction

bitmart prediction

lbank prediction

coinex prediction

bingx prediction

bitcompare prediction

huobi prediction

xt prediction

luno prediction

bitfinex prediction

bitrue prediction

upbit prediction

zipmex prediction

bitpanda prediction

safepal prediction

bitstamp prediction

bittrex prediction

prediction market

prediction market

prediction market

polynion

polynion

polynion

polynion

polynion

polynion

polynion

prediction market

prediction market

prediction market

prediction market

prediction market

prediction market

prediction market

Usdt

token Ethereum

solana token

bscscan token

prediction market

prediction market

opinion market