The biggest mistake that investors can make in the face of uncertainty is to base their investment decisions on political predictions, says Morgan Housel, a partner at the US venture capitalist firm Collaborative Fund and author of The Psychology of Money and Same as Ever. He gives the example of how when Bill Clinton became US president in 1993, investors thought he would raise taxes which would be bad for the American economy. “But then we had a bull market for eight years, which proved all the pundits wrong,” comments Housel.
The biggest mistake that investors can make in the face of uncertainty is to base their investment decisions on political predictions, says Morgan Housel, a partner at the US venture capitalist firm Collaborative Fund and author of The Psychology of Money and Same as Ever. He gives the example of how when Bill Clinton became US president in 1993, investors thought he would raise taxes which would be bad for the American economy. “But then we had a bull market for eight years, which proved all the pundits wrong,” comments Housel.
