How Checking Performance Might Hurt Your Performance

Paying too much attention to your investments (more than once per quarter) costs more than just your time: Make you more risk-averse. The shorter the time the returns are generated from, the less risk investors are willing to take. You’ll see loss 50% of the time if you check performance daily, 25% if one a year, 1% if 7 years. Mislead about future return. Knowing which stocks performed the best last month won’t tell you which ones will perform the best this month....

March 25, 2020 · 1 min