Strategies for the Irrational Investor

If you are like the typical investor, cognitive biases, emotions and reactive thinking inevitably influence your decisions to some extent. The result can often be subpar portfolio returns. Some of the most obvious examples of behavioral errors are lotteries. Why do we play when the odds of winning are low? Ironically, part of the reason…

 

How Likely is a Market Downturn?

Would you rather purchase ground beef that contains 15% fat or that is 85% lean? Of course they are the same, but for most people, 85% lean ground beef sounds more attractive. That is why packages of ground beef or hamburger patties are presented or “framed” to emphasize the high level of “good” in the…