by admin | Aug 23, 2018 | Behavioral Biases Series
According to an article published in Seeking Alpha, Regret Aversion “refers to the idea that investors fail to make decisions or take action because of the fear that they will regret it in the future. This bias is closely tied to errors of omission, where an error is...
by admin | Aug 16, 2018 | Behavioral Biases Series
A wise man should have money in his head, but not in his heart. —Jonathan Swift This week we are going to examine what is known as the Endowment Bias. According to a paper published in the Journal of Econimic Perspectivesby Daniel Kahneman, Jack L. Knetsch and...
by admin | Aug 1, 2018 | Behavioral Biases Series
This week we are going to examine what is known as Status quo bias. According to Michael M. Pompian, author of Behavioral Finance and Wealth Management, “Simply put, Status quo bias, a term coined by William Samuelson and Richard Zeckhauser in 1988, is an emotional...
by admin | Jul 19, 2018 | Behavioral Biases Series
This week we are going to examine what is known as Self-control Bias. According to Michael M. Pompian, author of Behavioral Finance and Wealth Management, “Simply put, self-control bias is a human behavioral tendency that causes people to fail to act in pursuit of...
by admin | Jul 10, 2018 | Behavioral Biases Series
This week we continue our examination of Emotional Biases by focusing on Overconfidence Bias. According to Michael M. Pompian, author of Behavioral Finance and Wealth Management “In its most basic form, overconfidence can be summarized as unwarranted faith in...
by admin | Jun 26, 2018 | Behavioral Biases Series
Win as if you were used to it, lose as if you enjoyed it for a change. —Ralph Waldo Emerson This week we begin our examination of Emotional Biases by focusing on Loss Aversion. An article in The New York Times written by Carl Richards gives us a great example of Loss...
