…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…
Search Results for: psychology OR behavior
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…
Warren Buffett's Strategy Based on Market Anomalies
…are pointed out: Human behavior: the tendency for investors to gravitate toward get-rich-quick potential; Leverage: which can be “added to the safest stocks to bring them up to the same…
Sentiment Measures Are Not Reliable Investment Cues
The topic of market sentiment and how it manifests in stock price shifts and investor behavior is addressed in this week’s Enterprising Investor. In today’s post-election market, the article points…
The Frailty of Market Predictions
…of psychology professor Philip Tetlock, who conducted a study of the predictive success of both experts and non-experts and analyzed upwards of 80,000 forecasts regarding various political and economic events….