Chasing the latest investment craze is incredibly easy, as we are bombarded with success stories at every turn – the neighbor who got in on the hot IPO, our brother-in-law with his 30% hedge fund return last year, and the advertising campaigns of the top mutual fund companies, proclaiming their latest star performers (how often does a mutual fund company take out ads listing their best and worst five funds?!). Collectively, these stimuli lure us like a siren’s song to chase the latest winners, be they asset classes, managed portfolios, or individual stocks.

“Hope is not a strategy” – Thoughts from the Frontline Weekly Newsletter dated August 31, 2007.

John Mauldin