stupidities in the world of finance

Journalist Morgan Housel complains about stupid things financial experts often say. Everything in his long list is indeed foolish. Here are three of my favourites.

“More buyers than sellers.”

This is the equivalent of saying someone has more mothers than fathers. There’s one buyer and one seller for every trade. Every single one.

“The Dow is down 50 points as investors react to news of [X].”

Stop it, you’re just making stuff up. “Stocks are down and no one knows why” is the only honest headline in this category.

“He was tired of throwing his money away renting, so he bought a house.”

He knows a mortgage is renting money from a bank, right?

Morgan Housel, “Stupid Things Finance People Say“, The Motley Fool, 14 November 2013.

HT Cardiff Garcia, The Closer, FT Alphaville blog, 24 January 2014.

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