How to Keep Headlines From Driving Your Portfolio Decisions

On behalf of everyone at AAII, I want to say thank you to all of you who have served or are currently serving in the military. The stock market will be open Friday, Veterans Day, but banks and government offices will be closed. Big, unexpected events commonly trigger strong emotional reactions. The wiring in our…

 

You Could Spend More Years Being Retired Than Working

There might be a limit on how long humans can live. Jan Vijg, a geneticist at Albert Einstein College of Medicine, published research in the journal Nature putting the upper limit for longevity at 115 years. More precisely, The New York Times quoted him as stating, “Humans will never get older than 115.” Vijg’s conclusion…

 

Jeopardy! Shows Humans Don’t Maximize Profits

One of the common behavioral biases is anchoring. Anchoring is basing expectations and viewpoints on previous, often recent, information. An example would be the yield on the 10-year Treasury note. The benchmark bond yielded 1.59% today. If it were to rise over the short term to, say, 2.0%, your opinion would likely be that rates…