…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…
Search Results for: psychology OR behavior
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…
Billionaire Ray Dalio Calls Himself a “Professional Mistake Maker”
…ago. According to a Forbe’s estimate, Dalio is worth around $15.6 billion, and his fund employs 1,500 people and manages about $150 billion in assets. In an interview with psychology…
What are Investor Returns, Really?
…buying opportunity. Or after a rally we buy, when maybe that was the best selling opportunity.” It’s this type of poorly timed behavior that can increase the spread between published…
The Payoff and Perils of Momentum-based Stocks
…like behavior in investors, while others, attribute it to good or bad earnings results. Cliff Asness and his team at AQR say it could be both fundamental and behavioral reasons…
Understanding the Behavioral Continuum on Your Way to Becoming a Better Investor
Shreenivas Kunte, director of content at the CFA Institute, recently wrote about the Behavioral Continuum and how it affects our decision making process. He contends that “behavioral patterns extend across…
Avoiding the Negative Return Gap
Writing in the Wall Street Journal, former Morningstar analyst John Coumarianos highlights “investors’ self-defeating behavior” and suggests ways to correct it. He notes that Morningstar data shows a “negative ‘return…
Emotions and Biases Play Huge Role in Bad Investment Decisions
In a recent New York Times article, columnist Gary Belsky observes that “the majority of cognitive biases and shortcuts that influence everyday judgement and choice have analogues in investment behavior.”…
Finding "True Signals" in Volatile Markets
…for any wisdom that drives such behavior” in an effort to “recognize that new signals matter.” Thus, “investors should commit more time to looking for deeper explanations for market behavior.”…