Smart Money, Dumb Idea: Bad Bets by Financial Pros 

By Ben Steverman - 2013-10-22T17:22:03Z

Photograph by Tomohiro Ohsumi/Bloomberg

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Joe Davis: Chasing Asia

I fell prey to a common mistake made by investors – chasing past performance. In 1991, enamored with the considerable run-up in the Japanese stock market, I purchased my first fund with money from my college savings, the Vanguard Pacific Index Fund. Of course, I bought near the peak and watched my investment nose dive over the ensuring years. I learned my lesson. There's nothing wrong with broad exposure to the Asia-Pacific region, but it should be part of a well-balanced portfolio.

Joe Davis is global chief economist and head of investment strategy at Vanguard Group Inc.

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