Being biased brings with it that we don’t think like we think we think. We make illogical decisions.
Passive index fund investing via a Regular Savings Plan or Dollar-Cost-Averaging is logically right, right?
But emotionally and in terms of common sense, it often feels wrong.
I do believe it’s worth remembering now and then just how strange it actually is. I get this feeling particularly when trying to persuade others to the cause during the recent market downturn.
Perhaps it’s also worth feeling just a smidgen of pride at circumventing your human emotions and apparent common sense to make the leap to passive investing.
So here are just a few biases that can be slaughtered managed with regular – and thus passive – index investing.
Overconfidence:
Many people who invest heavily in stocks tend to heavily exaggerate their own abilities and downplay the role of luck in ......