Topic: How To Invest

What is Pat’s commentary for the week of November 22, 2016

Article Excerpt

Dear Inner Circle member, When you’re just starting out as an investor, you may experience an “aha” or “oh, I get it” moment. That’s when you think you’ve figured out what the future holds for a single stock, or the market as a whole. You may see your newfound analysis as a near-certainty, but that’s an illusion. At best, it’s a prediction, more likely an outright guess. If you decide to back your guess with a big investment, you can do great harm to your net worth in one of two ways: If you guess wrong, you’ll lose money right away. If you guess right, you may make a quick profit. But this can lead you into a habit of making big bets on every aha moment that comes along. You may get more confident every time you guess right. If so, you may back up your guesses with ever-larger bets. When you eventually guess wrong—it’s bound to happen—you may lose so much that…

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