The Benefits of the Other Side

By Jack Forehand (@practicalquant) —   Polarization has become the new thing. Everyone seems to have such strong opinions one way or the other on every issue that they just can’t see how the opposite opinion to their own is even possible. They can’t see how a rational human being could think differently than them. Obviously, the biggest place we currently see this is in politics. More and more political opinions are cast in stone and are… Read More

Keeping Confirmation Bias at Bay

As emotional creatures, human beings are prone to a multitude of behavioral biases that can help them in daily life, but hurt them badly in the investing world. Even the best investors can slip up and let these biases lead them astray, so today we’ll take a look at an article written earlier this year on “confirmation bias” by Kiplinger’s Bob Frick. Confirmation bias, Frick writes, is “the human tendency not only to hear what… Read More

Avoid “Confirmation Bias”

In his latest Wall Street Journal column, Jason Zweig discusses one of the behavioral pitfalls that can drag down many investors’ portfolios: confirmation bias. What is confirmation bias? “In short,” Zweig explains, “your own mind acts like a compulsive yes-man who echoes whatever you want to believe. … A recent analysis of psychological studies with nearly 8,000 participants concluded that people are twice as likely to seek information that confirms what they already believe as… Read More