Tag: behavioral finance

Mean Reversion: The Market’s Way Of Rationalizing Irrational Moves

After the apple hit Sir Isaac Newton’s noggin, he, and subsequently the rest of the world, understood gravity – what goes up must come...

Uncovering Value: Price Discovery And Irrational Investing Behavior

This post was written with Chris Kerlow and Craig Basinger. The essence of money management can be encapsulated in searching for investments that are trading...

Contrarian Investing: The Pains, Gains, and Takeaways

Contrarian investing has always been a fascination of mine. From the first time I read Humphrey Neill's classic book The Art of Contrary Thinking, I've been watching...

From Herd Behavior to GroupThink to Market Bubbles

This post was written with Craig Basinger. The human species learned long, long ago that sticking together is a good thing. During our evolution, larger...

Investors: The Downside Of ‘Loss Aversion’

I co-wrote this post with Craig Basinger of Richardson GMP. You own 1,000 shares each of company A and B, each originally purchased for $100. Since...

Are ETFs Driving The Market’s Herding Mentality?

This post was written by Craig Basinger of Richardson GMP. There is no question Exchange Traded Funds (ETFs) have exploded in popularity. They offer many...

Study: Unloved Stocks Offer Opportunity For Savvy Investors

This post was written by Craig Basinger of Richardson GMP. Behavioral Finance combines behavioral and cognitive psychology theory with conventional economics and finance. Essentially it...

The Insidious Nature Of Investing Hindsight

Many of my conversations with clients touch upon how they react to missing significant investment opportunities or selling profitable investments too soon. Most of you...

Mutual Fund Investing: Not All Behavior Gaps Are Created Equal

I spend a lot of my time writing about the common mistakes made by investors because I operate under the assumption that cutting down on...

The Theory Of Reflexivity: A Primer For Today’s Market

The last two years of the U.S. stock market’s relentless bid has been, to say the least, at thing of wonder – especially for...

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