How John Maynard Keynes learned the folly of market timing

In an extract from his book The Sceptical Investor, John Stepek explains how the great economist John Maynard Keynes came a cropper when he first started investing – and how he turned his fortunes around.

John Maynard Keynes © Tim Gidal/Picture Post/Hulton Archive/Getty Images
Keynes: not a humble man © Getty
(Image credit: John Maynard Keynes © Tim Gidal/Picture Post/Hulton Archive/Getty Images)

John’s out of the office today and tomorrow, so we’ve got a couple of extracts from his book on contrarian investing, The Sceptical Investor (published last year with Harriman House).

This morning’s piece is about how the great economist John Maynard Keynes came a cropper when he first started investing – and managed to turn his fortunes around by cultivating mental flexibility.

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John Stepek

John Stepek is a senior reporter at Bloomberg News and a former editor of MoneyWeek magazine. He graduated from Strathclyde University with a degree in psychology in 1996 and has always been fascinated by the gap between the way the market works in theory and the way it works in practice, and by how our deep-rooted instincts work against our best interests as investors.

He started out in journalism by writing articles about the specific business challenges facing family firms. In 2003, he took a job on the finance desk of Teletext, where he spent two years covering the markets and breaking financial news.

His work has been published in Families in Business, Shares magazine, Spear's Magazine, The Sunday Times, and The Spectator among others. He has also appeared as an expert commentator on BBC Radio 4's Today programme, BBC Radio Scotland, Newsnight, Daily Politics and Bloomberg. His first book, on contrarian investing, The Sceptical Investor, was released in March 2019. You can follow John on Twitter at @john_stepek.