Research and data continually show that, in aggregate, most investors regularly end up with subpar investment results. Why is this? Unfortunately, as humans, we can be our own worst enemy because of how our brains and emotions tempt us to react to short-term market events.
Without any doubt, the evidence is clear that diversification is an investor’s best friend and truly the only “free lunch” in the world of investing.
As there continues to be significant speculation in alternative investments today, what about art, automobiles, and other collectibles? Once again, let’s learn from what the evidence actually shows.
One of the most common excuses for not investing more money on a regular basis is that we can’t afford to. We simply don’t have enough spare money. But we’re all prone to spend more than we should. In this brief video, we see that it’s our everyday spending habits that are chiefly to blame. Addressing these habits is essential if you want to be comfortable in retirement.
As we’ve all been impacted in some way by COVID-19, this brief, 3-minute video discusses some very important principles and lessons we should always keep in mind as wise, successful investors.
One of the biggest mistakes investors regularly make is the tendency to extrapolate what has recently been taking place in the financial markets into the future. In the world of Behavioral Finance, this is commonly referred to as recency bias.
In this brief, 3-minute video, we take a closer look at this and provide you with some practical guidance that can help you become an even better investor.
Although it continues to be clearly documented by ongoing academic research that active managers who attempt to outperform benchmarks via stock selection and/or market timing consistently fail, this fool’s errand continues to persist because of the high fees generated by doing so. In this brief, 3-minute video, my colleague and friend Robin Powell, highlights some of the ongoing hurdles these speculators face because of their long-shot bets.
Most individuals focus too much on the “here and now” vs. the long road ahead. In the world of investing, this can lead to very poor, reactionary decisions. In this feature of our video blog, we take a look into a very common bias in the field of behavioral science. It’s our sincere hope that this will help you to stay committed to your financial plan over the years ahead.