John Pierpont Morgan was known to have said, “Nothing so undermines your financial judgement as the sight of your neighbor getting rich.” Understanding the bigger picture can help us avoid unrealistic performance extrapolation (both up and down) and stay focused on those things that truly offer the most opportunity for lasting gain. There’s no more important time than now to look forward rather than backward. This year has been particularly dangerous, not because markets have imploded, but because the way they are moving exposes our psychological vulnerabilities as investors. After a strong 2017, U.S. stocks ran up very aggressively in…
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