Economic Review and GDP Spotlight

1st April 2016

“If owning stocks is a long-term project for you, following their changes constantly is a very, very bad idea. It’s the worst possible thing you can do, because people are so sensitive to short-term losses. If you count your money every day, you’ll be miserable.”- Daniel Kahneman

Daniel Kahneman, the winner of the Nobel Prize in Economics and author of the New York Times bestseller, Thinking, Fast and Slow, has helped investors better understand their thought biases in the hopes of creating a better investment experience. Even though we like to believe our decision making is rational, we are all susceptible to biases. The power lies in knowing that these biases exist.

Every day we are forced to deal with our investment biases. As we discuss later in the newsletter, we can learn to deal with our biases partly by practicing our investment routines and sticking to the core investment principles. But, first, our review of the current economy and markets.

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