10
Putting it all together
‘I can calculate the motions of the heavenly bodies but not the movements of the stock market.’
Isaac Newton in the 1600s after he had been wiped out in a stock market crash
‘Usually, you know a hot sector after the fact, not before.’
Marshall Blume, Finance Professor at the University of Pennsylvania’s Wharton School
Portfolios, like stock markets, are very strange creatures indeed.
I constantly fret over the health of mine – it is my other child, that constantly causes me limitless grief and anxiety, interspersed with the odd moment of euphoria. What makes my behaviour towards my portfolio even more inexcusable is that I also constantly break all the rules advanced by behavioural investment gurus like James Montier ...
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