This page is my idea of humour. Is what you believe about finance actually true?
I love researching the “conventional wisdom” and finding surprising things that are not true.
For example, most investment talks include comments on how the economy is doing and expectations for the economy. You may be surprised to know there is no evidence that the economy and the stock market are correlated at all. The stock market does just as well (or even better) on average in countries and periods of time with weak economies.
Don’t believe me? Look at the numbers.
In fact, when I listen to fund managers, if they talk about the economy, I take it as a sign of lack of knowledge. A good fund manager would be focused on his specific holdings, not the economy. Of course, I realize some will mention the economy only because they realize brokers and financial planners don’t know the economy is irrelevant and expect them to talk about it.
Another example is the “peak oil theory”, which was widely accepted as true just a few years ago.
There are many myths about the stock market. From a financial planning perspecitve, the most important one is that the long term returns of the stock market (20-30 years) are far more consistent than most people believe. It is volatile short and medium term, but surprisingly reliable long term.
“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” (Mark Twain)
You will be surprised how much of what you believe about finance that is just not true.
These articles are entertaining (if you have my warped sense of humour) and thought-provoking. Open your mind to new ways of thinking. Plus you can quote them to impress or debate with your friends!
- “Stock Market Beliefs – Part 1”
- “Stock Market Beliefs – Part 2”
- “Is Your Money Safe OR Secure?”
- “How to Read and Understand Business News”
- “Tax Refund Is NOT a Benefit of RRSPs”
- “Death of Equities – Again?”
- “It’s Not the Bear You See”
- “Financial Quackery (Video)”
- “Fear of a False Factor is Favourable – II (Long Answer)”
- “Fear of a False Factor is Favourable – I (Short Answer)”
- “Are you ‘Smart Money’ or ‘Dumb Money’?”
- “Have you Forgotten that Stock Markets Go Up?“
- “Why the Long Term Growth of the Economy is Not Relevant to Investing?
- “Why the Economy is Not Relevant to Investing”
- “6 Common Myths about Stock Market Returns”
- “Common Myths about Stock Market Risks”
- “5-Year Fixed Mortgage Trap (Video)”
- “Avoid the 5-Year Fixed Mortgage Trap”
- “Irrational Pessimism?”
- “Dumbest Investment Line of 2012 – ‘In These Uncertain Times’”
- “Myths about Leveraging into Equities – Part 1”
- “Myths about Leveraging into Equities – Part 2”
- “Peak Oil or Oil Bubble – The Peak Oil Argument”
- “Peak Oil or Oil Bubble – The Oil Bubble Argument”
- “Truly Active Managers Outperform – Being Different is the Key“