Category Archives: Behavioral Finance Basics
Probability Doesn’t Feel Like Probability
One of the most difficult realities investors face is that the future is never certain. [...]
Jul
Does Consumer Sentiment Mean Anything Anymore?
Markets are near all-time highs. Corporate earnings remain strong. Unemployment is still relatively low. Household [...]
Jun
Behavioral Finance Is Popular. Applying It Isn’t
Behavioral finance has never been more visible. Every firm seems to have a take. There [...]
Apr
Why a Disciplined Investment Process Beats Emotional Investing
Investing is a world filled with uncertainty, rapid change, and constant emotional temptation. In the [...]
Dec
Why Most Behavioral Finance Advice Fails – And What Works
Behavioral finance has exploded in popularity. Yet most of what advisors hear about it is [...]
Dec
The Most Important Skill in Finance
Before diving into this topic, take a moment to think about what you believe is [...]
Oct
When Investors Should Worry…And About What
Worry isn’t pleasant. It fuels stress, heightens emotions, and can even rob us of sleep. [...]
The Massive Flaw in Risk Profiling Instruments
In 2011, as part of my thesis at the University of Minnesota, I ran an [...]
Why Investors Underperform
Every year Morningstar puts out their Mind the Gap research that quantifies how much investors underperform both [...]
Your Investments Earned 12%. Are You Happy?
You are reviewing your investment performance from last year. You realize your investment portfolio gained [...]