Before you go do a spell check, yes that’s the way I’m spelling the word wisdom. The point now becomes obvious how “so- called” conventional thinking when it comes to the financial markets (or anything in life for that matter) is long on convention, and short on wisdom. Conventional wisdom is quite often associated with an idea that is repeated over and over until it becomes a common belief. In most cases, these ideas are propagated with little evidence to support their truthfulness.
Most of you probably know that before Christopher Columbus set sail for the East Indies–which later turned out to be the new world –the conventional wisdom of the day was that the world was flat. That notion was obviously debunked when Columbus returned from his maiden voyage safe and sound. As it turned out, he didn’t fall off the face of the earth as many expected.
Conventional wisdom also has most people believing that ostriches stick their heads in the sand when they are under duress, when in fact they don’t do that at all. They actually lay flat with their necks parallel to the ground when they sense danger. I have to… Continue Reading
