A Rich Life

The Old Ideas on Saving & Investing Don't Work -- Here's What Does

Valuation-Informed Indexing #601: Logic Produces Gradual Change, Emotion Produces Rapid Change

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I’ve posted Entry #601 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Logic Produces Gradual Change, Emotion Produces Rapid Change.

Juicy Excerpt: I believe that the reason why we ignore the obvious (to me, at least) realities of stock investing is that they scare us. Stock investing is a serious subject. Knowing the true size of our stock portfolio is important. Accepting that it is investor emotions that are the primary determinant of stock prices is deeply unsettling. So we pretend that this is not so. We pretend that the numbers on our stock portfolio statement are real and reflect something of lasting significance.