The human brain is hard-wired to hold on to negative ideas and events more than positive ones, which can manifest itself in investor behavior, explains Validea CEO John Reese in…
Search Results for: psychology OR behavior
Investor Returns Hurt by Attempts to Time the Market
…the gap if “everyone left their funds alone.” Even in overseas markets, writes Kinnel, “the gaps and behavior patterns were not so different from what we saw in the U.S.”…
Focus on the "Known Knowns" When Investing
…know more than they do. While this can be costly in any context, it can break the bank when mixed with investing. In the field of psychology, this tendency is…
Hulbert Says Momentum Investing Lives
…relates to human psychology, and “in particular to our tendency to react irrationally when confronted with new information.” Hulbert cites a suggestion by Daniel as to how to improve the…
Four Cybersecurity Sector Picks
…business’s expectations regarding what might happen. “This isn’t unlike the world of investing,” he says, because “expectations are often what drive investor behavior and, subsequently, shifts in share value.” Reese…
Study Shows Retirees Become More Pessimistic About the Market as They Age
…University finance professor Meir Statman, the article says, people who have a good amount of savings have trouble changing the frugal behavior that created the next egg in the first…
Male Stock Analysts Show Bias Toward Companies Run by Men
…The study states that “in-group bias is one of the main aspects of human behavior” and is attributed in part to genetics, and “a need to reinforce social identity.” …
Ritholtz Says Stock-Picking is Still Alive if Not Kicking
…both professional investors and individuals.” We have a much greater understanding of investor psychology, and this “makes the case for low-cost index investing even more compelling.” Quantitative studies, writes Ritholtz,…
Greenblatt Blends Active and Passive Strategies in New Fund
…for example, generates “lots of cash flow, and we don’t have to pay a big price for it.” Greenblatt doesn’t envision a change in investor behavior due to stretched valuations…
Robert Shiller Shares Insights on the Trump-Bump
…he can’t speak authoritatively on what’s ahead because that would be “guessing human psychology,” he says that the current Shiller P/E ratio (also referred to as the CAPE) of 29…