Human beings are predisposed to make bad investment decisions. Our natural reactions will lead us to buy near the peaks and sell near the lows, which is not a good recipe for building wealth.

Sure, some people can be dispassionate about investing, but most of us succumb to an emotional response at some point and we inevitably zig when we should zag. Just look at mutual fund money flows compared to mutual fund performance. Cash flows in near the top and out near the bottom.

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