One of the problem investors face is what behavioral psychologists call Recency Bias. In other words, they focus on the very recent past and project that indefinitely into the future.
Of all the behavioral biases people are prone to, one of the most prevalent is optimism bias. We typically assume things will turn out better than they do.
Broadly speaking, there are three different types of fund you can invest in: active funds, passive funds and funds that give you exposure to certain risk factors.
Mark Hebner summarizes the market's performance during the second quarter of 2018 and demonstrates the difficulty in picking the next asset class winner.
10 min
About Index Fund Advisors - Podcast
From the publisher's feed
Index Fund Advisors (IFA) is an independent financial advisor that provides wealth management by utilizing risk-appropriate, returns-optimized, and tax-managed portfolios of index funds. IFA.tv…
provides webcasts explaining the investing strategies of IFA.com and Mark Hebner's book, Index Funds: The 12-Step Recovery Program for Active Investors, with Foreword by Nobel Laureate Harry Markowitz. See hard cover here: http://indexfundsbook.com and iBook here: http://iBookIndexFunds.com.