Daily Archives: Nov 14, 2018 at 08:40 am EST

Behavioral Risk Is Highest In The Early Years Of A New Investment

It’s old news that managing expectations is usually the main challenge in finding success with an investment strategy. To paraphrase Pogo in the quest to earn a respectable return through time, we’ve met the enemy of prudent behavior and he is us. Less obvious is the tendency for this behavioral risk to go to extremes early on in the period immediately following the establishment of a new investment. By comparison, a decade or more into the holding period — assuming you make it that far — is relatively safe from a behavioral perspective.
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Macro Briefing: 14 November 2018

UK and EU reach provisional agreement on Brexit: CNBC
Democratic gains rise a week after mid-term elections: NY Times
China’s retail spending trend slows as industrial output picks up: Reuters
German economy shrank in Q3, first decline since 2015: Bloomberg
Japan’s economy contracted in Q3 due to natural disasters: Japan Times
Several bearish factors continue to weigh on crude oil prices: MW
Spain will ban all gas-powered cars by 2040: Gizmodo
Analysts expect headline consumer inflation to rise 0.3% in Oct vs. Sep’s 0.1%: MNI
US small business optimism held near record high in Oct: NFIB