In a Financial Planning article titled “Investing Should Be Painful,” founder of research firm Wealth Logic, LLC Alan Roth writes, “I suggest telling clients to embrace the pain and…
Tag: Behavioral Finance
How Your Brain Hurts Your Returns - And What You Can Do To Stop It
What’s the biggest obstacle to investment success? Validea’s John Reese says it may well be our own brains. “The capabilities of human beings’ brains are staggering,” Reese writes in his…
Don't Get Spooked By Value Stocks
Value stocks may have underperformed growth stocks for several years now, but Validea CEO John Reese says investors would be wise not to pronounce value investing dead anytime soon. “Given…
How Your Brain Hurts Your Returns -- And What You Can Do To Stop It
What’s the biggest obstacle to investment success? Validea’s John Reese says it may well be our own brains. “The capabilities of human beings’ brains are staggering,” Reese writes in his…
Mauboussin: Understanding the Process Can Help Separate Luck and Skill in Investing
AAII editor Charles Rotblut, CFA, interviewed Michael Mauboussin, head of Global Financial Strategies at Credit Suisse, about the role of both luck and skill in investing (subscription required). According to…
Your Personality And Your Portfolio
Does your personality impact how you fare as an investor? According to the research of Robert Durand, a finance professor at Curtin University in Australia, personality traits can indeed help…
What Happens To Your Brain During A Bubble
What happens inside investors’ brains as bubbles form in asset markets? A new study from researchers at Caltech and Virginia Tech offers some insights into the answer to that question.…
The Enemy Within: 10 Common Mistakes Investors Make
More often than not, an investor’s worst enemy is his own brain. A myriad of behavioral biases to which we, as human beings, are predisposed are constantly threatening to knock…
Why Following the Herd Is Like Sex and Candy for Investors
Why do investors tend to move in herds, buying when others buy and selling when others sell? According to a new study, it’s because of biology. The study, detailed by…
How Your Brain Can Drag You Down -- and How You Can Overcome It
Nature vs. nurture — it’s an eternal debate, and, as Jason Zweig shows in his most recent Wall Street Journal column, scientific research shows it’s a question that can have…