Sawyer Capital ManagementAvoid The Recency Pitfall – Sawyer Capital Management https://www.sawcap.com Evolutionize Web Site Tue, 14 Nov 2017 19:30:19 +0000 en-US hourly 1 https://wordpress.org/?v=5.1.22 Avoid The Recency Pitfall https://www.sawcap.com/2015/06/08/avoid-the-recency-pitfall/ https://www.sawcap.com/2015/06/08/avoid-the-recency-pitfall/#respond Mon, 08 Jun 2015 09:00:38 +0000 http://evolvemypractice.com/?p=1971 Last year, U.S. real estate investment trusts (REITs) were the best-performing equity asset class. In addition, U.S. stocks far outperformed international stocks. Unfortunately, historical evidence demonstrates that individual investors tend to be performance chasers. They watch the markets, then buy yesterday’s winners (after the great performance) and sell yesterday’s losers (after the loss has already...

The post Avoid The Recency Pitfall appeared first on Sawyer Capital Management.

]]> Last year, U.S. real estate investment trusts (REITs) were the best-performing equity asset class. In addition, U.S. stocks far outperformed international stocks. Unfortunately, historical evidence demonstrates that individual investors tend to be performance chasers. They watch the markets, then buy yesterday’s winners (after the great performance) and sell yesterday’s losers (after the loss has already been incurred).

Thus, I wasn’t surprised at the amount of time I spent in 2014, and in early 2015, trying to convince investors to avoid the mistake I refer to as “recency.” Recency is the tendency to extrapolate recent returns far into the future, which causes investors to buy high and sell low. That’s not exactly a recipe for investment success.

Read the rest of the article on ETF.com.

The post Avoid The Recency Pitfall appeared first on Sawyer Capital Management.

]]> https://www.sawcap.com/2015/06/08/avoid-the-recency-pitfall/feed/ 0