How to Avoid Bubbles-Diversify!

Posted on Dec 1, 2010 in Behavioral Finance, Investment

Good article by Robert Huebscher on investor psychology and how individual investors can get sucked into the momentum of bubbles such, as technology in the late 90s and real estate in the 2000s.  Market timing and forcasting don’t consistently work.  Even those who correctly prognosticate the direction of the market are often wrong on the exact timing of the turn.  The best defense is a diversified portfolio.   See story.