I can't agree more. There are studies that show exactly what you describe. Also note: The stock market is extremely irrational and chaotic... people have a tendency to think they know better than the average. One study did do an experiment that went like this:
They asked (I don't have the exact numbers at hand) 1000 people to answer the following question:
Do you think that you are better informed about the companies that stocks you hold than the average stock holder who also invests in the same company.
In a rational/non-chaotic market about 50% would say "yes" and 50% would say "no". If I remember correctly 90% said "yes" and only 10% said "no". When you buy stocks you should be aware of that because I think its very important to know...
They asked (I don't have the exact numbers at hand) 1000 people to answer the following question:
Do you think that you are better informed about the companies that stocks you hold than the average stock holder who also invests in the same company.
In a rational/non-chaotic market about 50% would say "yes" and 50% would say "no". If I remember correctly 90% said "yes" and only 10% said "no". When you buy stocks you should be aware of that because I think its very important to know...