Buy and Hope

There is a room on Wall Streetthat has a big white board.

On the left side of the boardis a list of reasons why themarket went up today.

On the right side there isa list of reasons why themarket went down today.

After the close, the experts gointo the room and pick off areason for what happened.

After all, investors are alwayslooking for the reasons why themarket goes up or goes down.

Any reason will do.1

Cosmetic and financial services are strikingly similar. They both sell hope. For instance, after the stock market bubble burst in spring 2000 and after the crash of October 2008, the concept of buy and hold as a strategy should have died a stake-to-the-heart death. Despite everything that should have been learned, most still follow ...

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