You should think of buying investments like you buy food–do it often. Make it a habit to invest your money like you make it a habit to pay your rent/mortgage.
A one percentage point increase in ETF ownership also experience a 14% reduction in the average magnitude of their future earnings response coefficients.
Rules-based strategies are not guaranteed to work any better than faith-based strategies, but when they don’t do well, there is, at least, a ready explanation for why.
The wisdom of crowds depends on the errors of individual investors cancelling each other out. But if we all exhibit certain behavioral patterns that are consistently irrational in the same way, sometimes the errors don’t cancel out.
The Economic Policy Institute, a progressive think tank, estimated that the hedge fund loophole cost $6 billion a year- the cost of providing health care to three million children.
I’ll be in Chicago April 26-28 with Josh Brown, our CEO, and Kris Venne, our director of financial planning. We’ll be meeting with clients and potential clients as well as attending the Morningstar conference. It’ll be my first time visiting, so I’m looking forward it!
Michael Batnick is a managing partner at Ritholtz Wealth Management. He is the co-host of Animal Spirits, What Are Your Thoughts, and The Compound and Friends. For disclosure information please see here.
Get a Full Investor Curriculum: Join The Book List
Every month you'll receive 3-4 book suggestions--chosen by hand from more than 1,000 books. You'll also receive an extensive curriculum (books, articles, papers, videos) in PDF form right away.