Flight 4: Are we in a Bubble, Investment Envy and Why Diversification Sucks

This is podcast #4. We discuss what investment bubbles are, are we in a bubble? How would it affect us as investors, why being an envious investor causes one to continuously buy high and sell low, thus underperforming the actual investment we're invested in. Finally, we discuss how diversification can help but is the least "sexy", the most boring ways of investing thus the attention-getting title "diversification sucks." We finish up discussing the potential gotchas of index investing and warn investors to use caution with new, complex, and unnecessarily expensive index funds.