The Danger of Focusing on What Should Be and Missing What Is

Excess Returns · Jun 14, 2020 · 15m

We all have our beliefs about the way that things should work in investing. When the market gets overvalued, we think it should go down. When value stocks struggle for a long period of time, we think they should outperform. When central banks or governments implement policies we don't agree with, we think they will inevitably end in disaster. But that focus on the way we think things should be can sometimes lead us to miss the reality of what is. In this episode, we talk about the balance between having conviction in the way things should work out and recognizing the way they are actually…