Ep 53: Investing Vs. Speculating Part 2

65% of Institutional Investors surveyed in late June believe the market is factoring in the long-term impact of the coronavirus "too little" while only 5% said "too much," implying the market is overvalued. Yet, the market has continued to go up. Has it come too far too fast?

Hear Kevin discuss the topic in detail and explain why our brain function predisposes us to make investing mistakes, including blindly chasing investment returns and firmly entering the world of speculation (while abandoning principled and process-based investing). He even attempts to work in stories about Homer Simpson, Halloween, Thanksgiving, and pre-modern man to illustrate his points. Quite a feat to attempt. You won't be disappointed. 

 

Timestamps:

5:34 - Are Markets Factoring In The Impact Of The Coronavirus Appropriately?

9:54 - How Do We Define The Term “Market?”

15:34 - Too Big, Too Fast?

19:19 - An Important Lesson From The Simpsons

25:00 - Breaking The Herd Mentality