Three big investment lies from Wall Street
Wall Street experts said, the greater the risk, the higher the return.
Although we know this sentence, but most people only see the half, after completely ignore the first half.
In fact, investment advisory opinions and harmless, but if ignore the potential risks and follow high returns sugar-coated cannonball, loss of the principal is not far off from you.
It is time to expose the lies of so-called "experts" :
1. They will be able to accurately predict the future.
Certainty and overconfidence is the two main causes of loss in the market.Smart investors will understand that their investment is in the framework of uncertainty.
When someone tell you, they know that something will happen, and will bring very big profits, then you need to worry about saving yourself a survival.
The financial marketsThere is no "must" and "never", you need to stay away from this commitment.
2. New product is always better.
In 1970,The U.S. stock marketOnly 361 mutual funds, is nearly 8000 and the end of 2014.Maybe you will feel very normal, but the United StatesThe stock marketOnly 3700 stocks, Wall Street experts spawned thousands of funds through the different reason, just want to be magic.
Established since 2004, a year on average 650 funds, and collapse of 533 fund per year on average.
This is not to show that fund is useless, on the contrary fund is very useful for your investment.Every year, however, Wall Street, speed is close to the investors can't keep up with, can only blindly follow.
Unless you can understand what they do well, or understand their way of profit, otherwise don't easily to believe those new products.
3. Is easy to measure, identify and hedge risk.
Believe that a lot of people don't understand what is "measure" and "recognition" and "hedge".
It doesn't matter, Wall Street's experts also don't understand.
To be perfect measure and identify risk model does not exist, as market participants, human itself is unpredictable factors.Risk is personalized, it is easily affected by the investors and unpredictable change.
Next time someone tells you to enter a few Numbers can perfectly predict any risk, so you can walk away.