…an exercise in psychology as it is accounting.” Talking to friends and family about investing is a mistake. According to Batnick, “Talking about your investments removes objectivity and adds difficulty…
Search Results for: psychology OR behavior
Withdrawal Strategy Suggested by Stanford for Affluent Boomers
…only discussing the numbers, but also by addressing ideas that motivate client behavior and potentially lead to shortsighted decisions. Vernon believes people should embrace the concept of a second phase…
Five Questions: Value Investing with Wes Gray
…rational and behavioral economics in quotes because many argue (to include Dick Thaler) that behavior IS economics, not some sub-set of economics. Anyway, this is how the research seems to…
The Mental Roadblocks Faced by Investors
…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…
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…