Category Archives: Behavioral Finance

What to Do when the Markets are Up, Down or Sideways?

Our country recently experienced one of the most raucous and divisive presidential elections in recent memory. And, since January, we have been bombarded with news related to the new president’s actions and policies. Depending on your preferred news source, the … Continue Reading

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Behavioral Finance Lessons

Recently, I listened to a terrific podcast with Dr. Daniel Crosby, author of a new book, The Laws of Wealth: Psychology and the Secret to Investing Success and co-author of a former New York Times bestseller Personal Benchmark: Integrating Behavioral … Continue Reading

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How to Avoid Behavioral Investment Mistakes

As trusted advisors, our job is to help people make informed and smart choices. To do that, we have to explore and understand behavioral biases. In the podcast I mentioned last week, Dr. Daniel Kahneman summarizes the cognitive biases that … Continue Reading

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Dr. Daniel Kahneman

I’m looking forward to December 6, 2016, publication of Michael Lewis’s next book The Undoing Project: A Friendship that Changed Our Minds about the partnership of Daniel Kahneman and Amos Tversky. Several years ago, I heard Dr. Kahneman deliver one … Continue Reading

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What is Your Risk Tolerance?

How can you assess your investment risk tolerance? Like many advisors, we use risk tolerance questionnaires to facilitate client conversations about risk. You can take a look at a popular risk tolerance quiz here. Some advisors use the results of … Continue Reading

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A Look Back Since the Financial Crisis

It has been well documented that during the Global Financial Crisis (GFC), many individual investors panicked, sold the bulk of their investments and sat in cash waiting to get back into the market. If you asked them, they would tell … Continue Reading

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The Seven Year Bull Market Run

Well, it may not seem like it when we consider that the S&P 500 Index got off to its worst start ever in the first week of the New Year, but we are in one of the longest-running, broadest wealth-producing … Continue Reading

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Listen Up. Very Little Market Noise Matters

  I share the sketch above with the permission of Carl Richards, a CERTIFIED FINANCIAL PLANNER™ and the director of investor education for the BAM ALLIANCE. As the creator of the weekly “Sketch” Guy column in The New York Times, … Continue Reading

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What’s Luck Got to Do with It?

Daniel Kahneman, the father of behavioral economics and the winner of the 2002 Nobel Prize in economics, recently addressed hundreds of financial professionals at the IMCA 2015 New York Consultants conference in Manhattan. The Princeton University emeritus professor of psychology … Continue Reading

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What is an Advisor Worth to an Investor?

To answer this question I want to clarify that we are talking about an actual human advisor and not automated financial advice or a “robo advisor.” Also, we’re addressing more that returns. Today’s trusted advisor provides cogent wealth management advice that encompasses financial planning … Continue Reading

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