…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…
Search Results for: psychology OR behavior
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…
Ritholtz Ranks What Helps or Hurts Investment Returns
…you can figure out all the things you are doing wrong. Self-awareness and ego is a significant thread in this context.” Behavior and discipline: “Investors continue to be their own…
Tips for the Contrarian Investor
…adaptive systems by Michael Mauboussin and others that highlights both the importance of independent investor thinking and behavior as well as group decision-making, that a “crowd predicts better than the…
The Losing Battle to Consistently Beat the Market
…have trailed the S&P 500 and about 80% of small-cap managers have trailed the Russell 2000. Investors in these funds have done significantly worse than that. The so-called behavior gap,…
Active and Passive Investors: Which Perform Better?
…out the importance of understanding the data’s underlying calculations because “at best,” he says, “they are a proxy for investor behavior.” For example, he explains, the ongoing flow of dollars…
A Different Definition of Risk
…not realistic; The investment vehicles you are invested in don’t achieve their expected returns; Your investments do achieve their expected returns, but your own behavior gets in the way. The…
Artificial Intelligence is About to Hit Your Portfolio
…that of machines evaluating and predicting human behavior, “such as how portfolio managers trade around management meetings and earnings.” Some financial firms, it says, are even betting that AI can…
How to Keep Investing Perspective
By John Reese (@guruinvestor) — “Perspective shifts us from worry to options.” Wise words written by Carl Richards, CFP in his Behavior Gap email last week—and timely given the up-and-down…