“Investing is not rocket science,” says Paul Samuelson, Nobel Economist. “Investing should be dull. It shouldn’t be exciting. Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” Even grade school kids beat the S&P 500 using a simple well-diversified portfolios made up of three to eleven no-load index funds. The formula won a Nobel Prize. And yet, in spite of the results, Wall Street’s mind-numbing hype and propaganda machine makes it virtually impossible for passive investors to focus on building a boring, dull long-term strategy.
For example, a couple years ago I estimated that the average investor was being overwhelmed by 43,000 fund and stock recommendations and pitches annually—in newspapers and magazines, on cable television, radio and online. The relentlessness and intensity of Wall Street’s noisy hype machine is purposely designed to distract, confuse and brainwash investors, and more often than not, they succeed, forcing Main Street investors into making costly mistakes and feeling inadequate about managing their personal finances. (More)