Decades ago, we received our financial information more slowly. Of course, this snail-mail delivery system didn’t make the information any less important. But somewhere along the information superhighway, investors as a whole have confused “real-time” with “real important.”
For example, the average holding period for any given stock is less than 2 years. This is down from 20 years back in 1949. Quicker delivery of news, lower trading costs, and a roaring bull market escalated this short term-ism in the 1990s.