What are the myths of investing? Many of the mistakes that investors make are due to the fact that most of the information they receive about investing is marketing in disguise. Ever wonder why everyone seems to have a different opinion on how you should invest your money? Ever wonder why an investment that you bought didn’t do as well as you had expected? Find out how the investment world really works in this first step to conscious investing.

Below, Steve Foltz and Jeff Young discuss the 4 Myths of Investing.

MYTH 1: Stock Selection
DEFINITION: Stock Selection: Choosing stocks that are believed will do well in the future.
THE MYTH: Investment advisors can consistently and predictably add value by exercising “superior skill” in individual stock selection.


MYTH 2: Track-Record Investing
DEFINITION: Track-Record Investing: The use of performance history to determine the best investments for the future.
THE MYTH: Finding funds that did well in the past is a reliable method of indicating which funds will do well in the future.


MYTH 3: Market Timing
DEFINITION: Market Timing: Any attempt to alter or change the mix of assets based on a prediction or forecast about the future.
THE MYTH: Money managers are able to utilize market timing effectively to predict up & down markets.


MYTH 4: Costs of Investing
DEFINITION: Costs of Investing: Fees incurred by investors to buy, sell, and own stocks or mutual funds.
THE MYTH: What you don’t see can’t hurt you.


The concepts presented here are based on copyrighted materials originally developed by Matson Money, Inc.  Mathies Financial Partners and Matson Money, Inc.  are not affiliated.

If you’d like to learn more, sign up for one of our ESSENTIALS classes here:  Mathies Financial Partners Investor Classes

Video and Audio Disclaimer