Behavioral Finance

Daniel Kahneman, the father of behavioral economics and the winner of the 2002 Nobel Prize in economics, recently addressed hundreds of financial professionals at the IMCA 2015 New York Consultants conference in Manhattan.

To answer this question I want to clarify that we are talking about an actual human advisor and not automated financial advice or a “robo advisor.” Also, we’re addressing more that returns.

Unless you are very rare, we all make mistakes. The important thing is that we learn from them. And I thought you might enjoy reading about lessons from some of the most common investment mistakes:

What does market volatility have to do with biology? According to John Coates, former Wall Street trader turned neuroscientist, and author of The Hour between Dog and Wolf, plenty.

Is it really different this time? Fueled by fear or greed, investors have the bad habit of turning their backs on fundamental investment truths when emotions run high.

With the recent drop of the S&P 500 Index the TV’s talking financial heads have begun to ask: Are we wading into a bear market?  Or might the downturn signal the end of a multi-year rally inside a prolonged bear market?

I just read a really interesting article in Financial Advisor magazine “Don’t Fall in Love with One Player: Behavioral Finance Lessons from the NFL Draft” by Lorie Konish. She explores how Richard H.

You’ve probably heard a family member or a colleague complain about someone who “hears only what he wants to hear.” While being wedded to one’s opinions and ignoring new relevant information is human nature this trait can seriously jeopardize investment decisions.

We’ve all asked ourselves questions like “Why do smart people make foolish choices?” In Sway: The Irresistible Pull of Irrational Behavior (Doubleday June 2010) the authors Ori Brafman and Rom Brafman examine the reasons for our irrational behavior and suggest how we can make more rational choices.