Five reasons the investment industry may work against some investors

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A bear market invariably causes investors to say things such as “the whole market is a scam,” or “the only people who get rich are the brokers.”

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It is, of course, human psychology to blame others when things don’t go as expected. We are not going to change that. But the market is not a scam, and such statements dismay us. People who believe the scam line are doing themselves a disservice, and will likely never get wealthy. But that is the topic for a future column.

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Today, we will certainly agree that the market and the investment industry itself are far from perfect — sometimes very far. Let’s look at five reasons the investment industry may work against some investors. Being aware of these issues might save you some money, prevent panic or at least educate you on what you should do rather than what you have been doing.

Too much focus on the short term

All investment eyes were on exactly one data point this week: the consumer price index (inflation) number in the United States. Next, everyone will shift to corporate earnings reports. Sure, these are important when…