Behavioral Finance and How to Avoid Making Poor Investing Decisions

In a recent episode of the Validea podcast Excess Returns, Justin Carbonneau and Jack Forehand had an in-depth discussion about the coronavirus pandemic with Daniel Crosby, Ph.D., chief behavioral officer for Brinker Capital. Specifically, Dr. Crosby shared valuable insights and tips regarding human psychology, behavioral finance, the market and how investors can avoid making poor decisions during this time of uncertainty. Here are some highlights from the interview: Crosby referenced the 5-factor model for wellness… Read More

Swedroe Reviews New Book on Behavioral Investing

In a recent article for Institutional Investor, BAM Alliance Director of Research Larry Swedroe included Daniel Crosby’s new book The Behavioral Investor as one of his favorites on the study of behaviorial finance and how human nature “leads to investment errors, including the mispricing of assets.” “Crosby begins with a look at the sociological difficulties surrounding investment decision-making,” Swedroe explains, adding, “He then examines how the brain and body are poorly matched to the task… Read More

Most Read on Validea’s Guru Investor

Below are links to our most popular posts for this week on Validea’s Guru Investor blog.- [1] Five Questions: Behavior in Investing with Dr. Daniel Crosby [2] Mauboussin on the Pitfalls of Using EV/EBITDA in Valuations [3] Hulbert: Fund Performance is Largely Luck-Driven [4] Pure-Factor ETFs Poised to Shine in Market Downturn ——- Photo: Copyright: arcady31 / 123RF Stock Photo  

Five Questions: Behavior in Investing with Dr. Daniel Crosby

By Jack Forehand (@practicalquant) —   There is probably nothing that hurts our investment returns more than our behavior.  We spend a lot of time debating things like whether we should invest in active or passive funds or whether value or momentum is a better investing factor, but in doing that we often lose sight of the thing that studies have shown detracts from our returns more than all of that. The way we are wired as… Read More