Bloomberg Opinion contributor Barry Ritholtz recently tweeted about his dislike of financial clichés that reflect badly on the speaker and disrespect the listener. His Twitter followers responded with more than 500 examples of “hackneyed phrases” that can lead investors into error. Here are a few examples, along with the objections to them: “This is the next Amazon.” Stock promoters entice unwary investors with the prospect of huge gains in shares of XYZ, even though the odds are much greater that the company will go broke. “The stock market hates uncertainty.” Buyers and sellers always operate with uncertainty. If the outlook were certain, why would anyone be buying or selling? Furthermo
FINANCIAL EDUCATION ESSENTIALS
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"Best ideas", R. Cohen, C. Polk, B. Silli, 2010
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"How active is your fund manager? A new measure that predicts performance", M. Cremers, A. Petajisto, 2009
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"The inefficient stock market", R. Haugen, 2002
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"The triumph of the optimists", E. Dimson, P. Marsh, M. Staunton, 2002
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"From efficient market theory to behavioral finance", R. Shiller, 2003
