Investment Returns - Fees - Short Term - Herd - Margin-of-Peril - Incentive
Spot on article. Couldn't agree more with your conclusion. Money management is probably one of the only markets in which customers as a whole do not exhibit common sense, wether it be housing, tax exemption (in France at least) or stock market investment.
In this day and age, if customers spent 15min researching money management before investing, half of the companies would go down.
I completely share your vision, investing in a world ETF or the S&P500 on a regular basis seems much more profitable to me.
To set up for an individual a strategy of dollar cost average each month on a global index for several years is certainly the simplest and most profitable form of investment. The psychology of money is relevant enough to describe this https://www.amazon.fr/Psychology-Money-Timeless-Lessons-Happiness/dp/0857197681
I would like your opinion on two points:
- Do you include VC in the batch of money managers described here?
- Given the amounts currently printed and the related intrasequential loss of value of the dollar, do you think that having high cash reserves is relevant?