Showing posts with label behavioral finance. Show all posts
Showing posts with label behavioral finance. Show all posts

Wednesday, April 10, 2013

Friday, April 5, 2013

Thursday, December 15, 2011

Quote of The Day: Fear and Greed...

Fear-Greed-Cycle

"Be fearful when others are greedy. Be greedy when others are fearful."

- Warren Buffett



Wednesday, August 10, 2011

Don't Let Market Volatility Lead To Regrettable Investment Decisions...


  • “Individuals who cannot master their emotions are ill-suited to profit from the investment process.” - Benjamin Graham

  • Emotional investment reactions to sudden market declines and increased volatility tend to be driven by human behavioral biases, such as loss aversion.

  • Historical patterns of investor behavior show that surging equity market volatility can cause some investors to make hasty, emotionally charged investment decisions that often turn out to be regrettable.

  • Recognizing innate biases may help prevent investors from tampering with a well-crafted portfolio strategy during periods of severe market turmoil.