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3 Investment Fallacies to Unlearn

If something is repeated enough, it’s very easy to start believing them.

John Rekenthaler of Morningstar shares three investment fallacies he had to unlearn and the first one is a doozy because it’s repeated a LOT (there are huge political motivations for this too, which is why you hear it to so much).

3 Investment Fallacies I’ve Had to Unlearn [Morningstar] – “The public was very wrong about the future of Social Security. For example, in December 1989, Gallup pollsters asked working adults, “Do you think the Social Security system will be able to pay you a benefit when you retire?” The question was not whether benefits might be trimmed, or whether the system was well-financed, each of which could feasibly have elicited different answers. It was bluntly, “Will you receive a benefit?””

Spoiler alert – Social Security will be fine, solvent for a minimum of 37 years with even the most pessimistic of assumptions, but that’s not how the public saw it.

The other two are just as good.