Dimensional Perspectives: Déjà Vu All Over Again
Déjà Vu All Over Again
Investment fads come and go. Letting short-term trends influence your approach may be counterproductive to pursuing your financial goals.
Investment fads are nothing new. When selecting strategies for their portfolios, investors are often tempted to seek out the latest and greatest investment opportunities. Over the years, these approaches have sought to capitalize on developments such as the perceived relative strength of particular geographic regions, technological changes in the economy, or the popularity of different natural resources. But long-term investors should be aware that letting short-term trends influence their investment approach may be counterproductive. As Nobel laureate Eugene Fama said, “There’s one robust new idea in finance that has investment implications maybe every 10 or 15 years, but there’s a marketing idea every week.”
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SAGE Serendipity: Washington Post columnist Geoffrey A. Fowler “tries a $5,000 Sleep Number 360 smart bed and investigates other sleep tech that’s flooding the market. Does any of it work?” Check out The Switch review: Rocking beds and pillows that nudge when you snore: Tech wants into your bed