The average Main Street investor is at a distinct disadvantage … you are running a handicap race. If you’re one of America’s 95 million Main Street investors, the odds are better than 100:1 against beating the averages, thanks to the enormous firepower of Wall Street’s War Machine. And the gap’s widening, getting worse every day, now that Wall Street’s arming itself with the ultimate weapons of mass manipulation—behavioral finance, the psychology of investing, neuroeconomics, and the new science of irrationality.
On cable, in ads and sales pitches Wall Street pander to your ego with an outdated idea: You’re “the man,” a “rational investor!” Yes, you’re different, you can beat the averages, the indexes. But behind your back, they’re laughing at you, they know you’re irrational when it coming to investment decision-making. Moreover, they actually prefer a market filled with naïve, uninformed and irrational investors. That way, they can easily manipulate you—usually without you ever really knowing it. Oh, they’ll let you make modest gains, enough to keep you in line, to prevent a full-scale rebellion. (More)