…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…
Search Results for: psychology OR behavior
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…
Ritholtz Sees Long-Term Value In EMs, Europe
…We know this will require patience on our part, but we believe it will pay off over the long term. We feel that behavior, not a focus on the news…
The Dreman Approach: A Contrarian Guide to Beating the Market
…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 overvalue…
Fisher-Inspired "PSR" Strategy Still A Market-Beater
…5.3% annualized (figures through July 15). 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…
Ritholtz: Shut off the TV and Think Long Term
…it in context. And right now, he says, “Markets are neither cheap nor expensive. The psychology out there is that the public remains wary — of everything that burned them…
J. Zweig: You Should Welcome Market Declines
…frenzy to reversal in a single silvery flash. Lately, with so many people trading under the influence of cheap money, the customary buy-high/sell-low behavior of the crowd has bordered on…
Investors And The "Trifecta Of Failure"
…“mental catastrophes” the great ones “are masters of psychology,” Housel writes (h/t to The Big Picture). “They can’t control the market, but they have complete control over the gray matter…
Advisers vs. Machines
…most people cannot do. He also says that investors “unwittingly let their emotions dominate their intellect”, something that is not a problem for computers. He references the work of behavioral…