Night owls like myself often watch the late-night TV shows. One of the funnier bits from David Letterman’s show was the segment “Stupid Pet Tricks,” where pet owners have their animals perform all manner of dumb antics. Unfortunately, investors often act very much like the owners and pets on the TV show—and it isn’t funny. They are overconfident, get trampled by the herd, harbor illusions of control, and refuse to recognize their investment mistakes. The pets actually look smart in comparison.
