Ten most meaningless phrases in finance
Barry Ritholtz Bloomberg Oct 3, 2020 It has been more than a year since we last visited the question of annoying financial clichés. I recently asked the Twitterati their least favourite finance phrases, and I was shocked at the overwhelming response. Why does this matter? Useless finance phrases have a pernicious effect on our psyche, leading us to blindly accept ideas that should instead receive critical analysis. It’s not just that catchy phrases are no substitute for actual thinking, they are often wrong. Once again, let’s consider a new batch of the most meaningless phrases in finance: 1, “Don’t get complacent.” What, exactly, should an investor do with this bit of advice? How does a lack of complacency manifest itself in an investment portfolio? Should the recipients of this advice liquidate some or all of their holdings? Or should they merely be on the lookout for some heretofore unknown risk — as they always should? “Don’t have a smug or uncritical satisfaction with oneself or o...