Why Investors Do The Crazy Things They Do – Concept 7 Overreaction and the Availability Bias
This is the seventh article in this series where I discuss a concept called behavioral finance, or as I like to call it, why investors do the crazy things they do. It’s a relatively new field that tries to combine behavioral psychology theory and economics... Read More →
Why Investors Do The Crazy Things They Do – Concept 6 Overconfidence
This is the sixth article in this series where I discussed a concept called behavioral finance. It’s a relatively new field that tries to combine behavioral psychology theory and economics and finance to explain why people make irrational financial decisions. If you’ve been reading the... Read More →
Why Investors Do The Crazy Things They Do – Concept 5 Herd Behavior
This is the fifth article in this series where I discussed a concept called behavioral finance. It’s a relatively new field that tries to combine behavioral psychology theory and economics and finance to explain why people make irrational financial decisions. I’m no psychology expert, but... Read More →
Why Investors Do The Crazy Things They Do – Concept 4 Gambler’s Fallacy
This is the fourth article in this series where I discussed a concept called behavioral finance. It’s a relatively new field that tries to combine behavioral psychology theory and economics and finance to explain why people make irrational financial decisions. We’ve covered three concepts, Anchoring,... Read More →
Why Investors Do The Crazy Things They Do – Concept 3 Confirmation and Hindsight Biases
This is the third article in this series where I discussed a concept called behavioral finance. It’s a relatively new field that tries to combine behavioral psychology theory and economics and finance to explain why people make irrational financial decisions. We’ve already discussed Anchoring, and... Read More →
Too Scared To Invest?
It seems that investors get just as nervous about market highs as they do market corrections. As of this article, the market has now corrected about 5%. It’s also been almost 2 years since a 10% correction. Lots of investors... Read More →
Market Timing: Smart Strategy or Fool’s Game?
As a financial advisor, I regularly tell my clients, “Don’t try to time the financial markets.” Let’s start with the definition. Market timing is a strategy by attempting to predict when to buy assets near the bottom and sell them... Read More →
Where’s The Market Headed?
This stock market rally has really been quite impressive. It hasn’t received the respect it deserves. In fact, I’ve heard it called the Rodney Dangerfield of market rallies! As of this article,the Dow Jones Industrial Average is up 15%, the... Read More →
What I Miss About The Recession
The folks over at Wisebread.com a personal finance and frugal living website, just published an article entitled, What I Miss About the Recession. I found the idea so fascinating, that I just had to put my two cents on paper, well…the internet I... Read More →
Oh No! Not Another Market Correction!
Stock market corrections are inevitable and a part of investing. With the most recent stock market correction underway of around 5%, I thought I try to put it into perspective. They are also something that most investors don’t want to experience... Read More →