A Twitter Thread on Investor Ignorance That Every Investor Should Read
by Barry Ritholtz of Bloomberg
Over the weekend, O'Shaughnessy Asset Management chairman and founder James O'Shaughnessy posted an extensive tweet-thread discussing investor ignorance.
2/I don’t know how the market will perform this year. I don’t know how the market will perform next year. I don’t know if stocks will be higher or lower in five years. Indeed, even though the probabilities favor a positive outcome, I don’t know if stocks will be higher in 10 yrs.
The first step is recognizing what it is you know you don’t know. The question is always: "How will the market perform this year or next?" While O'Shaughnessy provides his estimates, he also details that he can't say with any degree of certainty how accurate he actually will be.