Value investing and thinking runs counter crowd Investment value as its nature is contrary to the crowds. Preferred securities may be undervalued, and preferred securities are mostly overpriced. By definition, what the crowd is buying are preferred. Preferred stock was pushed up on the basis of optimistic expectations and inability to represent fair value. If the value is not likely to survive in what the crowd is buying, so then wherever it may exist? That is when they are selling, do not know, or ignore. When crowds are selling a stock, the market price may fall sharply despite reasons. We are ignored, obscure, or newly issued securities can fall into situations and become undervalued. Investors may find it difficult to make people go against the mainstream because they do not never can be sure whether or when they will be proven right. Since they act opposite the crowd, such people almost always wrong at first, and be able to withstand losses on paper in a short time. Conversely, those who follow the crowd almost always the first time. Not only is the initial movement goes wrong, they can be wrong more often and for longer periods than others because market trends may continue to last through any limits guaranteed by basic values. the mistake of index investing
đang được dịch, vui lòng đợi..