We all have our beliefs about the way that things should work in investing. When the market gets overvalued, we think it should go down. When value stocks struggle for…
Tag: confirmation bias
Three Things I Feel Strongly About – And Why I Might Be Wrong
By Jack Forehand, CFA (@PracticalQuant) Confirmation bias is one of the most damaging biases in investing. All of us want to be right. We all want to think that opinions…
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…
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…
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,”…