Brain Tricks May Reduce Your Returns
What if you could create a forum for discussing the best way to invest in a responsible and intelligent manner? Who would you invite to participate in this debate? Here are my suggestions:
There would be no shortage of candidates to advocate stock picking, market timing and fund manager selection. Jim Cramer, for example, could tell you how he picks stocks featured on his “Mad Money” show.
Komal Sri-Kumar could discuss his views on market timing. He is the president of Santa Monica, Calif.-based Sri-Kumar Global Strategies Inc., a macroeconomic consulting firm that advises multinational firms and sovereign wealth funds on global risk. Mr. Sri-Kumar, commenting on the direction of the Dow Jones Industrial Average (DJIA), recently stated: “We are probably going to see a 2,000 or 3,000 point drop before we see [the] Dow [at] 20,000 years from now.”
Read the rest of the article at The Huffington Post.