Why Smart People Lose a Fortune

I just came across a book by Neal Frankle called, “Why Smart People Lose a Fortune“. I found it via the Chris Martenson Crash Course Web site.

The book tells you about ….The media and bad investment advice

“The more common mistakes that people make (buying and holding or buying bonds thinking they are the magic bullet), and tells you what a financial adviser should do (and how to pick a good one). He tells you how to choose the right investments for your goals, and finally, the 5 steps to market sensitive investing.”

There is an article by Barry Ritholz entitled, “Apprenticed Investor: Lose the News” that references the book, but more importantly includes some charts of the DOW and the headlines in the media at key turning points. Most times the media is dead wrong and you should do the opposite.

Take a look at the chart and the news headlines for the 2000-2002 Bear Market above and you will see for yourself why smart people lose a fortune reading the news headlines. Then read the whole article for a great learning experience.

Leave a Reply

CommentLuv badge