MICHEL PIREU: Face up to the harsh realities of not getting rich on stock markets
Pragmatic Capitalism founder says most people just reallocate savings when buying shares
Cullen Roche at Pragmatic Capitalism has written a number of articles that challenge myths about investing. Among these myths are: that investors in the stock market are in fact "investing"; that the stock market is a place you go to get rich; and that you need to beat the market. Your initial response may be to ask: who cares if any or all of these are myths? Calling it something other than "investing" won’t change what you’re doing; if the market isn’t a place to get rich, then what is it? And while it may not be essential to beat the market, what’s the harm in trying? The short answer is that it’s more a question of perspective, and it matters because a different perspective can lead to a different approach and allow for different results. So here is an attempt to get to the nub of Roche’s arguments…. The "investing" myth "I hate to break it to you," says Roche, "but you’re most likely not an ‘investor’ when you buy stocks or bonds. Most of us, when we buy stocks and bonds, are j...
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