Magic tricks utilize sleight of hand or misdirection. Everything about humans makes us prone to follow the shiny object. This most certainly holds true with investing. As I watch investment shows I once again find myself in disbelief how many investors have seemingly become “misdirected” and focus on the wrong things. Less experienced investors would have you believe that the experts who have been wildly successful for long periods of time “are too negative on the market”. So far these less experienced investors have been correct. But, then again, at every magic show the audience gasps in disbelief as the magician seemingly cuts the woman in half only to learn a few minutes later they were duped by misdirection.
