, Columnist
Don't Let a Bad Process Derail Your Investments
What's pricier: stocks or bonds? You'd better ask yourself a lot of questions first.
This is not a test.
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Something I try to stress in these columns is the importance of a valid process. Sure, I have a fondness for behavioral economics, but that’s because I know how cognitive errors can so easily derail our thought processes. Rather than impose a belief system on the reader (“ABC asset class is great!”), I prefer instead to help readers think through their own approaches: the classic “give a fish” versus “teach to fish” test, which dates back (literally) to biblical times.
I very often see market commentary out there failing to meet this simple test. I am compelled to use the error as a teachable moment.