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Michael Batnick: Opposite Of Conventional Wisdom

TedTed
in Fund Discussions
FYI: There was an article in the New York Times that highlighted the reversal of previous findings in medicine.

Of more than 3,000 studies published from 2003 through 2017 in JAMA and the Lancet…more than one of 10 amounted to a “medical reversal”: a conclusion opposite of what had been conventional wisdom among doctors.

This got me thinking about conventional wisdom in investing that might need further scrutiny. Before I get into it, this thought exercise was way more difficult than I thought it would be. The only piece of conventional wisdom that 90% of investors will nod their head at is “diversification is the only free lunch.”

I was able to come up with five items where I think the opposite of conventional wisdom is true.
Regards,
Ted
https://theirrelevantinvestor.com/2019/07/16/opposite-of-conventional-wisdom/

Comments

  • Tarwheel
    Good article. I particularly like the one about market highs signaling an imminent crash. A lot of investors fall victim to this reasoning and miss a lot of gains.
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