Or better put, successful investing is hard.
So says author, speaker, and CIO Robert Seawright of Madison Avenue Securities in a recent series of “Investment Belief” columns on his award-winning blog, Above the Market.
And despite the last four-plus years of what has seemed to be a constant surge upwards for the equity markets, I doubt many reading this piece would disagree.
In one of the articles, Seawright makes a major point about the distractions of noise within the investing environment and what he terms “bias blindness.” This translates into a fatal flaw for many investors, as they are “blinded” either by external influences (crowd mentality) or their own closely held beliefs (personal bias) into making some ill-advised investment choices.
Perhaps worst of all, because of our bias blindness, it is extremely difficult for us to see that there might be something wrong with our own analyses, perspectives and processes. Everybody else may be biased, but we remain convinced that we routinely come to a careful and objective conclusions for ourselves.
As the first quarter of 2014 draws to a positive close, certainly there have been several notable examples of “surprising” developments in the markets…
All the best,