Via The Psy-Fi Blog and Abnormal Returns
Facing the Big Guns
Tadas Viskanta, who writes and curates the excellent Abnormal Returns, recently penned an equally excellent article entitled There Has Never Been A Better Time To Be An Individual Investor. In this he cogently sets out a list of reasons why investing is cheaper and easier than ever before while caveating that our innate biases work against us when investing.
While agreeing with every word of the article, I think there’s danger for anyone executing anything other than the suggested default option of a low cost, globally diversified, occasionally rebalanced portfolio. Active private investors are engaged in an arm’s race with the securities industry and most of the big guns are facing the wrong way. The problem is that darned scientific method, which is why there’s also never been a more dangerous time to invest.
Read the rest here.
If you enjoy the content at iBankCoin, please follow us on Twitter
Everyone is worried about the computers, but new patterns and opportunities will develop. Be on the lookout. If all computers are programmed to take advantage of human irrationality, that edge is gone and some edge against the computers will develop. As all the great tomes on market trading expound, the market is the same because it is always changing.