…Well, Dreman, perhaps more than any other guru I follow, is a student of investor psychology. And at the core of his research is the belief that investors tend to…
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What To Do With All Those Competing Stock Picks?
…The Psychology of Financial Planning and Investing,” told Jaffe that investors who listen to stock recommendations should be aware of anchoring and familiarity bias, two behavioral biases that could trip…
Why Investors Underperform Their Own Funds, And The Market
…after a streak of hot performance and diving over the gunwales after it goes bad,” Zweig writes. “Because of that buy-high, sell-low behavior, investors in the typical fund have a…
Study: Investors Continue To Lag Market -- By A Lot
Dalbar Inc.’s latest Quantitative Analysis of Investor Behavior (QAIB) is out, and –once again– the results show that most investors continue to shoot themselves in the foot. “The average investor…
The Fisher Approach: The Price/Sales Ratio -- and Beyond
…6.0% annualized (figures through April 23). That makes it one of my most successful long-term strategies. Price-to-Sales and “The Glitch” Fisher is a student of investor psychology, and his observations…
Don't Let Your Brain Bully You Into Taking On Too Much Risk
…how the human brain assesses risk, according to a study that will appear later this year in a well-regarded psychology publication, the Journal of Economic Behavior & Organization,” he says….
Don't Forget The Crisis
…about what that bear market meant, how it affected their behavior then and how it ought to factor into their thinking now,” they write. One key lesson: Beware “expert” opinions,…
Ritholtz on the Folly of Forecasting
…own behavior. If you could, the fitness and diet industries would be bankrupt.” Making predictions, Ritholtz says, can set the stage for dangerous behavioral biases. “The true danger of forecasting…
Paying To Have Your Adviser Shoot You In The Foot
…such behavior than individuals. One study found that from 1991-2004, investors underperformed their U.S. stock funds by an average of 1.6 percentage points. For load funds sold by brokers, the…
Gundlach Talks Bonds, Housing, and Equities
Bond guru Jeffrey Gundlach says a big shift in market psychology has occurred, with “fear and loathing” ruling the day. He says investors have gone from thinking, “I don’t care…