The Curse of Greed

Detailed analyses and quantitative rigor go into every sound investment decision. To make matters more challenging, we are constantly battling our instincts, which can pull us in conflicting directions and get in the way of sound investment discipline. To this end, we must find an equitable balance between the fear that tugs at us when markets are down and the greed that tempts us in an upswing. This holds especially true today as markets scale new peaks, lulling us to believe that these heady times are here to stay. Prevailing asset prices and our long-standing experience tell a different tale, suggesting a major correction is due.