At the start of 2023, investor sentiment hovered near record lows, pushed down by a number of weighty concerns: inflation not seen since the 1980s, skyrocketing interest rates, an ongoing war in Eastern Europe, a consensus view of impending U.S. recession and dismal market returns in 2022. Yet when the dust settled on 2023, the S&P 500 had gained over 26%, tech stocks surged well over 40% and Bitcoin skyrocketed over 150%.
Looking back, 2023 offers some teachable moments that can make us better investors if we pay attention.
Lesson 1, Understand recency bias. This is an aspect of human nature that causes us to place undue weight on recent events when formulating expectations for the future. In the…
Read More: Heed 2023′s teachable moments when it comes to investing