On today’s episode, we’ll discuss how periods of return, especially recent ones, can paint a very different picture than what has unfolded over longer time frames and how the infatuation with the best performers can taint the way we look at our own portfolios.
Topics Discussed:
- What recency bias is and how it can be dangerous for investors.
- The importance of periods of return and how they help paint a bigger picture.
- What investments tend to be consistently rewarded.
- The importance of diversification and how you (generally) want your portfolio set up.
- Why the S&P 500 works and how it relates to diversification.
Resources Mentioned:
Tags
portfolio, investing, investments, recency bias, cognitive bias, diversification, investment strategy, ER docs, emergency doctors
