Good words of wisdom from the blog, The Big Picture:
"One of the things we have harped on around here is the tendency for humans to be backwards looking in their sentiment.
The Recency Effect means we monkeys place disproportionate emphasis on recent stimuli or observations, regardless of worth or significance. Indeed, investors become bullish after they buy stocks, bearish after they sell them, as part of the self-rationalization process to justify their actions."
As I said to someone just yesterday, it's tough always striving to play the role of contrarian.
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