Chris Cole, of Artemis Capital, recently asked, “What investments do you justify by common knowledge today that will look foolish 40 years from now?”
Here are a few I think might qualify:
First has to be embracing a passive approach to equity investing just as the median stock becomes more highly valued than ever before in history…
Liquidity moves markets!Click here to learn how you can follow the money.
…and the smartest guys in the room loudly proclaim, “sold to you!”
Next I would submit short-selling volatility…
…when economic policy uncertainty is soaring to record highs is probably not very wise, either.
Finally, maxing out the duration of your fixed income exposure…
…when both nominal and real interest rates test their all-time lows doesn’t strike me as a great recipe for investing success.
Time will tell.
Wall Street Examiner Disclaimer:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am also a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases promotional consideration is paid on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.