Rise above the feelings of regret

There are two ways that forecasting is useful in investing. The first is in making successful predictions about an industry or a specific company’s outlook. The second is in making honest predictions about yourself.

A 2015 study found that over the previous 20 years, the average US mutual fund investor earned a return of 4.7% compared with the market return of 8.2% – a gap of 3.5%. Almost half the underperformance was due to “voluntary investor behaviour” – panic selling, exuberant buying and trying to time the market.

“No evidence has been found to link predictably poor