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Subject:  Re: My Meeting with the AmEx guy Date:  2/27/2004  2:27 PM
Author:  TTRoberts Number:  39506 of 80262

Jesse (a.k.a. jesserivera67), you asked:

<< Curious on this. Would you say that the empirical evidence you are referring to is more historical than present and results from the fact that most people did not know any better? >>

No, from what I've gathered it's nothing to do with not knowing any better. It's about being able to minimize or take one's emotions out of the decisions for the buying, selling and holding of investments. So, you might see that the issue of such emotions has little to do with historical returns of any certain kind of investment. But the issue of emotions can have a lot to do with any individual's ability to maximize returns within any particular asset allocation.

Studies have been done over and over and in my own experiences and observations over many years has shown that people in general tend to let their emotions dictate their actions to a great degree . . . . no matter how smart and/or knowledgeable they are. And if anyone knows anything about the stock market, it's known that it's driven by emotions making it quite unpredictable. It's about a way to s