Avoid the temptation to chase hot stocks or sectors from "summary" of Random Walk Guide To Investing by Burton G Malkiel
It is a well-known fact that investors are often lured by the siren song of hot stocks or sectors that promise quick and substantial gains. These temptations can be hard to resist, especially when everyone around you seems to be cashing in on the latest craze. However, succumbing to these temptations can be a dangerous game that is more akin to gambling than investing. The truth is that chasing after hot stocks or sectors is a risky strategy that is unlikely to pay off in the long run. Just because a particular stock or sector has been performing well in the recent past does not guarantee that it will continue to do so in the future. In fact, history has shown time and time again that chasing after past winners often leads to disappointment and losses. Investing based on past perfo...
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