Monday, August 8, 2016
Follow Your Gut
Shown in the graphic below are the six primary mental and emotional biases investors suffer. Which cause them to experience worse returns than unmanaged indices. Wall Street & the financial media primarily exploit these biases rather than curing them.
Personally, I think the most destructive is the 5th one, a preference for Lotteries. Just look at the billions that flow into national & local government sanctioned lotteries, for example. Like any other bias-subject commodity on the market, this bias causes lotteries to be way over-valued.
Your Constructive Comments are Welcome!