sciencereligionphilosophyNews
Posts from the Frontline of The Media Industry
Science, Religion, and Philosophy News @ Jul 22 2015
The Perils of Investing in the Hot Fund
Most investors exhibit a decided "recency" bias, with looking at the most recent results of an investment to guess the direction of future performance. This is a big mistake, as investments tend to revert to the mean, meaning that the hottest investments will often perform the most poorly in the future.
