DM Monthly Report – Jan 2020

MORE THOUGHTS ON THE DECADES PAST AND FUTURE – In our Q4-19 portfolio commentary, we facetiously claimed to know exactly what the coming decade would bring (actually, we were imagining it was January 1990 instead of 2020 and that we were about to invest with the benefit of perfect geopolitical and economic foresight). Our aim was to emphasize that, even though compelling predictions for the next 10 years are now abundant and illuminated by vivid descriptions of current conditions, stock performance often bears little correlation to what our rational minds perceive to be the most important factors.

Another common cognitive bias that influences investor behavior is the belief that an extended period of growth is most likely to be followed by reciprocal weakness.

Click here to read more:  DM-Monthly-Report-Jan-20