…computer can amass and dissect huge amounts of data to predict behavior. For example, Zweig writes, “it can trawl through your actions—saving, borrowing, spending, prepaying a mortgage, buying a car,…
Search Results for: psychology OR behavior
The Information Factor in Stock Prices
…financial relevance.” The situation, she believes, stems from human psychology. That is, people have difficulty focusing their attention on relevant information when they are faced with “multiple competing cues.” Even…
Morgan Housel's Farewell to Motley Fool
…investors.That said, Housel believes there is still a “huge opportunity to gain an edge over most investors through patience and good behavior.” There has never been a better time to…
Fund Managers: The Latest Might Not be the Greatest
…argues, they can effectively end up buying high (as funds come off a successful period) and selling low (from funds coming off a weak period), an ill-fated pattern of behavior…
Politics and Investing: Don't Go with Your Gut
…gut instinct can lead people to make bad moves.” The research comes from studies of political impact on investor behavior from 1991 through 2002 (a period that encompasses three election…
The Trading Effect
In psychology and behavioral economics, the endowment effect is the hypothesis that people assign more value to things they own. Past studies have shown that experienced securities traders are less…
How the Brain Handles Buying and Selling
We’ve written often about the role that human behavior plays in investing. While logic and reason are contributing factors, emotions hardly take a back seat. In a recent issue of…
Investing Lessons from Brexit
…Wall Street Journal offers the opinions of some investment and behavioral-finance experts: Timing: A Loser’s Game Translating geopolitical uncertainty into potential market movements is very difficult because, according to William…
Are you a Solider or a Scout When it Comes to Investing?
It’s no mystery that much of investor behavior (and, consequently, stock market movement) is fueled by emotion and reaction as opposed to hard data or statistics. A recent Ted Talk…
Landing a Hole-In-One with Buffett
…irrational human behavior.” His investment approach seems to work pretty well, as Wilhelm’s $1.4 billion Touchstone Focused fund (TFOAX) has delivered a 13.67% average annual return (versus 12.15% for the…