Why We Think We’re Better Investors Than We Are

From their earliest days, the loosely confederated research efforts that came to be known as behavioral economics spawned a large quantity of studies centered on securities investment. This was not because the field’s pioneers were especially interested in stocks and bonds, nor was the early research commonly underwritten by financial services firms. Rather, the hive of activity that evolved into its own field — behavioral finance — reflected that investment markets provide unusually robust data sets for analyzing “judgment under uncertainty” (the title of a seminal textbook co-edited by the winner of a Nobel in economic science, the behavioral economist Daniel Kahneman) and “decision under

The Big Mistake Investors Still Make

Investors still buy funds and sell at the wrong times, especially in volatile markets Volatility has taken hold of the financial markets, and it’s likely to bring out the worst in investors. This year, the S&P 500 index swooned nearly 5% in January, remained flat in February, and surged more than 6.5% for the month of March. That’s after erasing last year’s August-September 8% drop with an 8.4% October gain. Moreover, smaller-company stocks, represented by the Russell 2000 index, were down more than 20% from their late-summer peaks in February, before storming back more than 10% since then. Moves like this drive investors crazy, often causing them to trade their holdings in damaging ways. He

Featured Posts
Recent Posts
Archive
Search By Tags
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • YouTube Social  Icon
blue-seal-250-52-dethomaswealthmanagemen
  • android-character-symbol_edited
  • apple-logo_edited
  • Twitter
  • Facebook
  • YouTube
  • Grey Yelp Icon
  • Instagram