How Behavioral Biases Can Affect Your Investments
Behavioral biases directly challenge an investor’s ability to make consistent, rational and logical investment decisions when faced with distractions. These distractions come from the media, uncertainty and volatility in the markets, or pressure to buy and sell from friends, relatives, financial “gurus” and other less than reliable sources for investment advice. Being able to identify distractions and put them in context can help investors see beyond their own human nature and act with more discipline when it comes to their portfolio choices. The study of Behavioral Finance emerged in the early 2000s with groundbreaking research done by Daniel Kahneman, […]
