Read? 3M's - Inside Investor's Mind
Optimism Bias: Believing that you are above average and that misfortunes are more likely to befall others
Seriously, how many average retail investors fully understand the big difference between 2.6% Compound Interests payable on HDB housing loan and Compound Returns on stock investment.
To be able to beat that 2.6% Compound Interests payable on HDB housing loan with Compound Returns on stock investment will require you to stay fully re-invested most of the time across several stock market cycles of bulls and bears. This low figure of 2.6% may look relatively small enough and it may make you to believe it is quite easy to beat it, Right?
