Dump the Dow: Why What You Pay Attention to Matters
In this episode, John Owens and Ryan Murphy talk about why price-weighted indexes like the Dow Jones Industrial Average can be distracting to investors.
John, who's a senior equity portfolio manager at Morningstar Investment Management, explains why investors should disregard single-day Dow point drops, and also any short-term performance.
Ryan, who's head of decision science at Morningstar Investment Management, shares some recent research that shows someone's risk perspective can be affected by what they pay attention to.
Together, our guests discuss with host Drew Carter how discipline and nudges can help investors ignore the noise and stay focused on their financial goals.
Host: Drew Carter, Production: George Castady, Guest: Ryan Murphy, Guest: John Owens, Production: Sammie Spector
Listen and subscribe to Morningstar’s Simple, but Not Easy from your mobile device.