Mauboussin on Equities And Retirement Investment Strategy

Here’s a video with Michael Mauboussin talking about his recent piece for Legg Mason called "Untangling Skill And Luck." Here, he talks about trying to resist the classic temptation to be a closet momentum investor who runs and hides when stocks fall and chases stocks when they rise. And if you think institutional investors are better at this than retail investors, think again.

See the Feb 2009 post Jeremy Grantham: “Pull the trigger” for the same kind of narrative from Jeremy Grantham right before the stock market lows.

PS. – Mauboussin was a professor of mine at Columbia Business School. He does some great things on behavioural economics. He is definitely a voice to listen to although he is more bullish than I am. Read Hussman to get an alternate (more bearish) view. I probably fall somewhere in between, seeing S&P fair value at 900, about 17% lower than where we are today.

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