Will 2022 bring the Stock Market back to Reality?

SmartStops comments: Such great macro analysis that our cohorts at Real Investment Advice provide.  All investors should take notice and ensure they are using our Smart Risk approach to protect their investments.  As this article states:  “The amount of speculation in the market currently is rampant. There have only been a couple of times in history when we saw similar investors’ actions, and both ended poorly.”  And to paraphrase...

Confirmation Bias:

Remember – CONFIRMATION BIAS can be a downfall for all investors and traders.. Here’s a really good article from Schwab on the subject. Their key takeaways are: Confirmation bias is the tendency to seek information that supports a person’s beliefs. This bias may lead investors to focus only on information that reinforces their opinions about an investment. Selectively choosing which information to use can lead to a lack of...

How much “Conviction” do you hold in your investment view?

SmartStops thoughts:    A good behavioral investment blogger wrote:  “The conviction that we express in any investment view reflects our expectations around the likelihood of certain outcomes. We are constantly making judgements that are founded on our subjective belief about probabilities and our confidence in the available evidence. Despite this we seem unwilling to talk in these terms. Instead, there is a tendency to frame investment...

The Truth behind Wall Street Analyst Ratings

SmartStops comments:  Our highly respected cohorts at RealInvestmentAdvice recently published an article which one of the key excerpts from is below.   We couldn’t agree more as we’ve documented to on this page the biasness of analytsts.  also points out their “biasness”.   There basically is little “Sell-Side” coverage and the analysts are always late to the game when moving from a Buy to a Hold or Sell as...

It Does Not Always Pay To Hold On To a Dividend Stock

I love receiving my regular dividend!   That’s what we hear from many investors out there.  “I never want to sell my dividend stock because it is paying a dividend and I don’t want to lose out on that.”  Dividend stock holders love their stocks, and rightfully so.  Dividend stock paying companies are typically ones that are usually managed well, are producing cash, and are thus able to pay a dividend.  Companies such as Coca-Cola, Johnson...