2min chapter

Forward Guidance cover image

Bullishness Approaching Mania | Peter Atwater on Market Psychology And “The Confidence Map”

Forward Guidance

CHAPTER

Passive Investing Can Try and Avoid Behavioral Foulsings

The belief that stock market only goes up is obviously not true and people believe that that can be very dangerous. But I think of passive investing as trying to avoid a lot of the behavioral issues that we've been talking about. If you don't have the discipline to sell high and buy low, passive investing is a good alternative. You just need to recognize that you are now passenger on a plane that is driven by the sentiment of others.

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