Monday, November 14, 2011

Laibson's Sensible Financial Tips

Economist David Laibson from Harvard gives sensible financial tips that go against conventional wisdom in this CNN Money article. Here's one that markets appear to be ignoring: obsess about dangers ahead, not about past dangers:

Q: The overseas markets have been hammered by the potential collapse of European debt and accounting scandals in Asia. Why put more money in these markets?

A: It is true that as we get further away from well-regulated markets, international investing becomes a problem. I recommend buying publicly traded securities only in well-regulated markets. And the bad news about Europe is already priced into securities.

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