Business Magazine

What Are Your Investment Blind Spots?

Posted on the 14 June 2013 by Mdelp

%%bloglink%%

what are your investment blind spots?
Some people have emotional blind spots that prevent them from seeing things that would be detrimental to a relationship and just about every car or truck has a one or more blind spots (those areas where cars driving in the lanes next to you seem to disappear from your side view mirrors).

What are your investment blind spots?

An investment blind spot can be similar to an emotional blind spot if it prevents you from seeing things (good or bad) that would make you want to change your previously held opinion of a certain investment. They can also be similar to a car blind spot if your buy or sell decision would’ve be opposite if you had viewed the data through a different view point.

I’ve found some investment blind spots are tied to a belief in a potential upcoming economic or social event (social security will go bankrupt / hyperinflation is around the corner, etc.), while some only relate to specific sectors of the market (technology / bonds / stocks, etc.) and others appear sporadically.

For example, I’ve caught myself in investment blind spots many times when a stock I’ve purchased has fallen in value and unfortunately, the bigger the loss the bigger the blind spot. I tend to overlook or discount new data that made the stock price fall in favor of the rosy story I told myself when I decided to buy the stock.

One of my friend’s investment blind spots popped up recently when he came across a fund that was paying a very high income. The only view point he was looking through when deciding what to buy was what investment was paying the highest income. When we sat down, however, and looked at the fund from a different perspective (not just income but also total return which is growth + income – losses) we both decided not to invest.

What about you?

What investment blind spots have you found yourself in?


You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Big Food Giants Manipulate Public Health Policy in China

    Food Giants Manipulate Public Health Policy China

    Coca-Cola is at it again. As soda sales decline in the United States and Europe, beverage companies look to emerging economies like China for growth. And, it... Read more

    The 15 January 2019 by   Dietdoctor
    DIET & WEIGHT, HEALTH, HEALTHY LIVING, MEDICINE
  • Jewellery for a Precious You

    Jewellery Precious

    Jewellery is always close to a woman’s heart. It completes her look and boost confidence. Considering the changing trends in jewellery fashion, it becomes... Read more

    The 15 January 2019 by   Dr.jenifer Sayyed
    LIFESTYLE
  • Rajshri Productions’ Next Is A Film On Friendship | Hum Chaar | Trailer

    Abhishek Dixit’s debut feature film Hum Chaar is a Bollywood film made under the banner of Rajshri’s film. Hum Chaar is written and directed by Abhishek Dixit. Read more

    The 15 January 2019 by   Themoviean
    ENTERTAINMENT, MOVIES
  • Saint Paul the First Hermit

    Saint Paul First Hermit

    Today is the feast day of Saint Paul the hermit. This is a sweet and delicate Oatmeal Bread topped with rolled oats and naturally sweetened with agave. Saint... Read more

    The 15 January 2019 by   Veronica46
    FOOD & DRINK, RECIPES
  • Irupathiyonnaam Noottaandu | Teaser | Pranav Mohanlal | Arun Gopy

    Arun Gopy’s Irupathiyonnaam Noottaandu is an upcoming Malayalam action-drama feature film starring Pranav Mohanlal and Zaya David in the lead roles. Read more

    The 15 January 2019 by   Themoviean
    ENTERTAINMENT, MOVIES
  • A Year Of Body Positivity

    Year Body Positivity

    Last January, as I sat there on New Years eve all set to make the same old resolutions I've made year after year for as long as I can remember, I realised how... Read more

    The 15 January 2019 by   Sparklesandstretchmarks
    DIARIES, SELF EXPRESSION
  • Garden Bloggers Bloom Day – Jan 2019

    Garden Bloggers Bloom 2019

    Euphorbia rigidaWhen I went out to take the photos for this blog post I was surprised at how much was in flower dotted around the garden. Read more

    The 15 January 2019 by   Patientgardener
    GARDENING, HOME

Magazines