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Five Common Investor Errors

Please note: This item is from our archives and was published in 2005. It is provided for historical reference. The content may be out of date and links may no longer function.

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Chasing returns on exotic foreign investments while ignoring growth opportunities in U.S. markets. Many portfolios today are dangerously overloaded with international investments.

Rushing to invest in real estate. If there is a real estate bubble, investors who are over-concentrated and poorly diversified will suffer the most.

Treating hot investment alternatives such as hedge funds or private equity accounts as though they were legitimate asset classes. They arent.

Taking a short-term view of tax avoidance by buying products that ultimately dont end up reducing their tax bill.

Ignoring the true costs of owning an investment. In a flat market investors will have a hard time recouping fees and expenses to make a profit.

Source: Zero Alpha Group, www.zeroalphagroup.com , 2005.