The market fell last year. Down 2.6% on the ASX 200, a number to which everyone will now compare their fund manager, or in your case, their spouse, and chastise them or fawn upon them according to their achieved returns.
But let me tell you that our preoccupation with statistics in the stockmarket, particularly the quoting of past returns does nothing but mislead the beginner, pervert stock selection and distract you from the main game, making money, and here’s why.
- Add up anything and you will find a statistic. One of my favourites is the average monthly returns from the stockmarket. Of course some months are statistically better or worse than the others, it would be incredible if they...Continue Reading