Kevin Duffy on why economists make poor investors

Managing money is an entirely different game from forecasting next year's GNP.  It requires a longer-term perspective and an ability to part ways with the crowd.  For an economist to become an unconventional thinker would require major reprogramming.  The more ingrained his academic thought process, the greater his obstacles.

Since economics is the allocation of scarce resources, managing money should be a great way for an economist to practice his trade firsthand.  Unfortunately, most Wall Street economists pass up the real world of investing for the more forgiving world of academia.  Some money managers would make good economists, but few economists are likely to become good money managers.  Those who can, do.  Those who cannot, forecast.

~ Kevin Duffy, "Economists Don't Play With Real Money," letter-to-the-editor, The Wall Street Journal, April 20, 1989