MarketWatch’s Paul Farrell recently offered up a scathing critique of “quants”, complete with this eye-catching subhead: “By Predicting Your Behavior, Quants Control Your Mind, Money, the Markets”. Since I run…
Search Results for: psychology OR behavior
Shiller: It's The Psychology, Stupid
Don’t underestimate the impact psychology has on the stock market and economy — that’s the message Yale economist and housing crisis predictor Robert Shiller recently gave during a lecture at…
Why You Can Be Good -- But Probably Not Great
…“They have to do with psychology, and psychology is hard wired into your brain,” Sellers explains. “It’s a part of you. You can’t do much to change it even if…
The Dreman Strategy: How to Turn Others' Fears into Your Profits
…investor psychology. In fact, his first book, written in 1977, was titled Psychology and the Stock Market (unless otherwise noted, however, all quoted material for this chapter comes from Contrarian…
Grantham on Cycles, Bargains, and the "Creative Tension" Facing Stock Investors
…new lows in 2009 as it overshoots fair value. Grantham offers some insightful thoughts on the psychology of deciding whether to buy stocks in the current climate. If he puts…
Study: Stock Prospects "Rosy" for Long Term
…and how it often causes investors to buy high and sell low. Their advice to avoid such behavior in the current market involves portfolio rebalancing. By rebalancing your portfolio back…
Ten Lessons from The Oracle
…by Warren Buffett. The lessons mostly focus not on financial expertise, but instead on psychology. “Buffett’s investment success comes from some easy-to-grasp human qualities as much as sophisticated expertise in…
Buffett's "Timeless" Predictions
…Buffett offers up to long-term stock market investors. After a year like 2008, Buffett’s lessons provide some perspective on dealing with recessions, bear markets and investor psychology. 1. Recessions can’t…
Hulbert: Current Crisis is "Textbook Illustration" of Liquidity Shock
In his regular New York Times column, Mark Hulbert looks at the stock market’s behavior since the credit crisis began and references a 2001 academic study to glean some insight…
PIMCO Co-CEO Calls for "New Thinking"
…the midst of a prolonged increase in precautionary behavior among entities that have suffered massive wealth destruction and face a multi-year clean-up of assets and businesses. Without further adjustments, there…