When the markets have done well for a while, or at least not scared the bajebees out of investors, people begin to tend to get greedy and seek returns even more … more of “the good thing” … in other words they may begin to chase fads.
However, developing and sticking to your plan is actually better for your wealth than chasing things. Soon markets turn and behavior has no choice but to reverse course – buy high to sell low.
The article below summarizes the differences between Fad versus Plan approaches.
Original blog … Will investors ever stop underperforming their own investments? … that inspired my syndicated article.
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