Common Investing Contradictions

Dr. David Edward Marcinko; MBA MEd CMP

Eugene Schmuckler; PhD MBA MEd CTS

SPONSOR: http://www.MarcinkoAssociates.com

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1. “Buy the dip” vs. “Don’t catch a falling knife”

  • A falling price is either a bargain or a warning sign — and you only know which after the fact.

2. “Time in the market beats timing the market” vs. “Price matters”

  • Long-term compounding is powerful, yet buying at the wrong valuation can cripple returns for decades.

3. “Diversify” vs. “Concentrate to build wealth”

  • Broad diversification protects you.
  • Concentration is how most fortunes are made.

4. “Be greedy when others are fearful” vs. “The trend is your friend”

  • Contrarianism says go against the crowd.
  • Trend-following says go with it.

5. “Past performance doesn’t predict future results” vs. “Winners tend to keep winning”

  • Momentum is real.
  • So is mean reversion.

6. “High risk, high reward” vs. “High risk often means high loss”

  • Risk can lead to outsized gains — or wipeouts.
  • The line between the two is rarely clear in real time.

7. “Cash is trash” vs. “Cash is king”

  • Holding cash hurts returns during bull markets.
  • Holding cash is priceless during crashes.

8. “Stay the course” vs. “Adapt to changing conditions”

  • Discipline matters.
  • So does flexibility when the world shifts.

9. “Buy what you know” vs. “Your circle of competence limits you”

  • Familiarity helps you understand a business.
  • But sticking only to what you know can leave you under-diversified or missing opportunities.

10. “Markets are efficient” vs. “Markets are driven by human emotion”

  • Prices often reflect all available information.
  • Until they don’t — and fear or euphoria takes over.

11. “Don’t try to beat the market” vs. “Someone has to beat the market”

  • Indexing works for most people.
  • But the market’s returns come from a minority of big winners — held by someone.

12. “Buy low, sell high” vs. “Low can go lower, high can go higher”

  • Value investors love bargains.
  • Momentum investors love strength.
  • Both can be right — and wrong.

13. “Patience pays” vs. “Opportunity cost is real”

  • Holding for decades can create massive wealth.
  • But holding the wrong thing for decades destroys it.

14. “Real estate always goes up” vs. “Real estate crashes happen”

  • Property is a long-term wealth builder.
  • Until leverage turns it into a liability.

15. “Follow expert advice” vs. “Experts disagree on everything”

  • Analysts, economists, and fund managers all have data.
  • They still reach opposite conclusions.

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EDUCATION: Books

SPEAKING: Dr. Marcinko will be speaking and lecturing, signing and opining, teaching and preaching, storming and performing at many locations throughout the USA this year! His tour of witty and serious pontifications may be scheduled on a planned or ad-hoc basis; for public or private meetings and gatherings; formally, informally, or over lunch or dinner. All medical societies, financial advisory firms or Broker-Dealers are encouraged to submit an RFP for speaking engagements: CONTACT: Ann Miller RN MHA at MarcinkoAdvisors@outlook.com -OR- http://www.MarcinkoAssociates.com

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Paradox V. Oxymoron

DEFINITIONS

By Staff Reporters

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Paradoxes are broader concepts that may include statements, situations, or phenomena, revealing a truth through contradiction (e.g., “less is more”).

Oxymorons are combinations of two contradictory words to create a new meaning (e.g., “deafening silence”).

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Most people tend to confuse a paradox with an oxymoron, and it’s not hard to see why. Most oxymoron examples appear to be compressed version of a paradox, in which it is used to add a dramatic effect and to emphasize contrasting thoughts. Although they may seem greatly similar in form, there are slight differences that set them apart.

A paradox consists of a statement with opposing definitions, while an oxymoron combines two contradictory terms to form a new meaning. But because an oxymoron can play out with just two words, it is often used to describe a given object or idea imaginatively.

As for a paradox, the statement itself makes you question whether something is true or false. It appears to contradict the truth, but if given a closer look, the truth is there but is merely implied.

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