Behavioral

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Behavioral finance is an area of study focused on how psychological influences can affect market outcomes it proposes that psychological influences and biases affect the financial behaviors of investors and financial practitioners.
One of the key aspects of behavioral finance studies is the influence of psychological biases.

May 15, 2020

illusion of control

Illusion of Control

How much control do we really have over the events in our lives? For example, how many times have we left for work with ample time to allow for traffic...
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May 15, 2020

overconfidence

Sizing Implications – Destructive Decisions

One behavior that can destroy investment results and ruin months, and maybe even years, of hard work, is destructive sizing decisions. Imagine you have a game plan on a stock...
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May 6, 2020

Regret Aversion vs FOMO

Regret Aversion vs. FOMO

Regret aversion deals with a fear of an unfavorable outcome, oftentimes leading to inaction.  FOMO is the ‘fear of missing out’ on a favorable outcome, oftentimes spurring rash action.  Both...
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March 27, 2020

Traits Linked to Going Broke in Retirement

Traits Linked to Going Broke in Retirement

Traits Linked to Going Broke Are you creative, curious, and sympathetic? It turns out that you are more likely to go broke in retirement. According to Catey Hill, studies show...
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January 15, 2020

Invest for Retirement

Invest for Retirement (You Don’t Have to Die Broke and Penniless)

Are you panicked about your finances? Do you fear living on the street and dying penniless? Welcome to the club, we’ve been expecting you. Forty-four percent of Americans complain that...
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January 15, 2020

Loss Aversion

Loss Aversion

Loss aversion defines peoples’ tendencies to prefer avoiding losses over acquiring gains. It explains the behavior that people will choose to stay where they are and not expand their financial...
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January 8, 2020

parent's financial advisors

3 Reasons Why Millennials Will Fire Their Parent’s Financial Advisors

As an estimated $68 trillion of wealth transfers from the baby boomer generation to the hands of millennials, Osterland claims that 80% of millennials will be on the hunt for...
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December 24, 2019

Anchoring and Adjusting

Anchoring and Adjustment

Anchoring and adjustment is an unconscious behavioral tendency. Therefore, the best way to counteract this phenomenon is to engage in critical thinking.
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December 24, 2019

Shep playing roulette

Gambler’s Fallacy

The Gambler’s Fallacy - aptly named due to its prevalence in the casino scene - is an important concept for everyone, especially investors, to understand and avoid
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