The ABC’s of behavioral biases: F-H
Let’s continue our alphabetic tour of common behavioral biases that distract otherwise rational investors from making best choices about their wealth. Today, we’ll tackle: fear, framing, greed and herd mentality. FEAR What is it? You know what fear is, but it may be less obvious how it works. As Jason Zweig describes in “Your Money […]
The ABC’s of behavioral biases: A-F
Welcome back to our “ABCs of Behavioral Biases.” Today, we’ll get started by introducing you to four self-inflicted biases that knock a number of investors off-course: anchoring, blind spot, confirmation and familiarity bias. ANCHORING BIAS What is it? Anchoring bias occurs when you fix on or “anchor” your decisions to a reference point, whether or not […]
The ABC’s of behavioral biases: an introduction
By now, you’ve probably heard the news: Your own behavioral biases are often the greatest threat to your financial well-being. As investors, we leap before we look. We stay when we should go. We cringe at the very risks that are expected to generate our greatest rewards. All the while, we rush into nearly every […]
