Economists and psychologists have conducted studies to determine whether investors always act rationally. They don’t. A number of persistent patterns of irrational investor behavior have been identified, including overconfidence, hindsight bias, short-term focus, regret, mental accounting and the hot-hand fallacy. We all tend to make these mental mistakes but can avoid them once we become aware. With this writing we… Read more →
Tag: Short-Term Focus
Going, Going, Gone.
Going, Going, Gone. It’s the name of a song by Al Kooper. The song is a lament. It recognizes that things have changed, never to be the same again. Some aspects of life with which we have grown comfortable are no more, supplanted by new and different ideas, difficulties and opportunities. (Note: If you are one of the 170 million monthly… Read more →