The ABC’s of behavioral biases: S-Z
We’re coming in for a landing on our alphabetic run-down of behavioral biases. Today, we’ll present the final line-up: sunk cost fallacy and tracking error regret. SUNK COST FALLACY What is it? Sunk cost fallacy makes it harder for us to lose something when we also face losing the time, energy or money we’ve already […]
The ABCs of behavioral biases: O-R
So many financial behavioral biases, so little time! Today, let’s take a few minutes to cover our next batch of biases: overconfidence, pattern recognition and recency. OVERCONFIDENCE What is it? No sooner do we recover from one debilitating bias, our brain can whipsaw us in an equal but opposite direction. For example, we’ve already seen […]
Cryptocurrency: What’s it all about?
Have you caught cryptocurrency fever, or are you at least wondering what it’s all about? Odds are, you hadn’t even heard the term until recently. Now, it seems as if everybody and their cousin are getting in on it. Psychologists have assigned a term to the angst you might be feeling in the heat of […]
The ABC’s of behavioral biases: H-O
There are so many investment-impacting behavioral biases, we could probably identify at least one for nearly every letter in the alphabet. Today, we’ll continue with the most significant ones by looking at: hindsight, loss aversion, mental accounting and outcome bias. HINDSIGHT What is it? In “Thinking, Fast and Slow,” Nobel laureate Daniel Kahneman credits Baruch […]
