I think I’ve seen just about everything in the investment world in my 17 years as a financial professional.
Every year, we hear “experts” claim there is a new paradigm and now is the time to change our thinking. Although these new ideas have changed dramatically over time, the results have been the same — disappointing.
Let’s take a quick review of history from just the last 15 years.
Does anyone remember 1997? The popular craze was to buy growth stocks and Internet companies. Value investing didn’t make sense anymore.
In 2001, everyone fell back in love with value companies.
A few years later, it was real estate.
Do you see the trend?
It’s human nature to chase the next great story.
Many people are looking for the easy button, thinking there could be another fund manager out there that can beat the market with some new technical derivatives.
I had someone the other day suggest we buy Iraqi dollars.