What If the Right Way to Invest Underperforms the Wrong Way?

Hopefully you’ll want to keep investing the right way even if it doesn’t always work. Focusing too much on short-term performance in any given year can expose your portfolio to recency bias. Hear the results of a fascinating report on the potential costs of this behavioral bias.

An index is a portfolio of specific securities (common examples are the S&P, DJIA, NASDAQ), the performance of which is often used as a benchmark in judging the relative performance of certain asset classes. Indexes are unmanaged portfolios and investors cannot invest directly in an index. Past performance does not guarantee future results.