Investment Bias: Hindsight
Hindsight bias is reading beneficial past events obviously predictable, and bad events as not predictable and without cause (called black swans). In the decade between 1999 and 2009, we have many explanations for poor investment performance. Brokers and talking heads
Investment Bias: Bandwagon Effect (or Groupthink)
The bandwagon effect, or groupthink, describes gaining comfort in something because many other people do the same. After all, “there is safety in numbers” correct? This is a falsehood. But let’s separate bandwagon-ing, from conventional wisdom. There is value that
Investment Bias: Information
Information bias is the tendency to evaluate useless or the wrong information when determining value. It’s the belief that certain commonly held data points are helpful in understanding the value of an investment, when they may not be. The key
Investment Bias: Confirmation
Confirmation bias is the natural human tendency to seek specific supportive sources, or overemphasize information confirming our decisions. People will often come to a conclusion, then seek information confirming the decision. Think about buying a car, once you bought the
Investment Bias: Endowment Effect
This is the belief that you own a “winner” and you will keep that winner for reasons that aren’t justified by the return. Owning companies is fun, and investors like to celebrate their victory over the market by stashing great
Investment Bias: Loss Aversion
Loss aversion is the tendency for people to strongly prefer avoiding losses at the detriment to obtaining gains. This puts an unnecessary fear on an investment not supported by the risk prima. This might be one of the most common
Investment Bias: Anchoring
Everyone has heard a mantra about first impressions and their lasting impact. That works for investors too. Because our brains thrive on recognizing patterns and the relationship one element has with another. This mental phenomena is called anchoring. This want
Money Stress and the Impact on Your Health
No one likes stress. Its impact on our decisions and relationships is bad, but the effect on our health can be permanent. We have all felt the effect of money stress, but often it’s only after the fact, or after
Meditation, Mindfulness and Money: 4 ways to channel mindfulness into your money
If you’re looking for some broader answers to the ‘universal question’ I’m not your guy and this is not that article. But I will say that after years of thinking the transcendental was not for me, I’ve changed. If it
There Is Too Much Money
You read that right, there is simply too much cash in the capital markets to not see a handful of effects that could impact your investments and plan. The supply of money floating around is massive right now. There is
Definitions: Fiduciary
A fiduciary is a person or organization that acts on behalf of another person or persons. They at all times must put their clients’ interest ahead of their own. Being a fiduciary thus requires being bound both legally and ethically