Can having a separate investment account managed by Bridgeport help me avoid buying investments when they are overvalued and selling them when they are undervalued?
The short answer is that most investment managers and investors including Bridgeport seek to buy investments when they are undervalued (or inexpensive) and sell them when they are overvalued (or expensive). This is simple enough, but the problem for many mutual and pooled fund investment managers is that investors in their funds tend to want to withdraw money from their funds when portfolio returns are weak or have recently declined (and investments may be undervalued) and invest when portfolio returns are strong or have recently increased (which often is when investments are overvalued). Despite our desire to buy low and sell high, the twin evils of fear and greed often cause investors to do exactly the opposite. The problem is exacerbated, however, for mutual and pooled fund investors as even if they are able to control their emotions and buy when returns have been poor and sell when returns have been strong, their future investment returns are often linked to the irrational behaviou
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