…behavior or ascribing greater value to something simply because you already own it.” This is evident when an investor is enticed to hang onto a stock or fund “long after…
Search Results for: psychology OR behavior
Howard Marks Weighs in on Surviving Market Upheaval
…no longer in an “optimistic” phase. “For some reason,” Marks said, “because of the way investor psychology works, people switch from only seeing the good to seeing only the bad….
The Challenge of Recency Bias for Investors
In a recent video on the Index Fund Advisors website (IFA.com), behavior expert and author Carl Richards discussed the challenge faced by investors from recency bias—that is, the tendency to…
Value Versus Growth in Emerging Markets
…adds that there are two caveats: The evidence is anecdotal, since there haven’t been many bear markets over the past ten years; Valuations don’t seem to have affected the behavior…
The Challenges of Market Cycle Timing
…the patterns of ups and downs that influence not just economics, markets and companies, but also human psychology and the investing behaviors that result. There is no arguing with the…
Market Wisdom from Howard Marks
In a recent podcast, author Tim Ferris interviews Howard Marks to discuss the Oaktree Capital co-founder’s views on investor psychology, his new book Mastering the Market Cycle: Getting the Odds…
Quants Find Profit in ETF Anomaly
…a growing group looking to exploit ETF behavior “at a time when indexes outnumber stocks and passive vehicles control more than one fifth of the market cap of the S&P…
Mauboussin on the Language of Likelihood
…psychology professor Phil Tetlock: “vague verbiage,” he says, “gives you political safety.” The authors created a survey to track the relationship between words and probabilities akin to one created by…
David Herro on What Has Changed in International Markets Since the 1980s
…a stock that’s gone down.” Herro explains that psychology drives us to want to be invested in something that “goes up even if it’s expensive,” and that this hasn’t changed…
If You Take Risk, Get Compensated for It
…also a behavioral aspect to this. The more volatile an investor’s portfolio is, the more chance they have to make bad decisions as a result of that volatility. Diversification is…