As investors, we’re often our own worst enemies. We like to believe that we make rational decisions with our money. Unfortunately, we often fall victim to subconscious errors in our thinking. There are endless ways human nature can trick us into making less-than-ideal choices with our money. Some of the most common ones are called “cognitive biases.” So today, I’d like to share five common biases that often lead investors astray and how you can protect yourself from them. (These
Plus, another earnings season double…
An infinite policy response is like infinite morphine. The pain hurts, but the morphine overwhelms the pain, to the point of generating bliss. This can create a twisted Pavlovian response, in which injury or illness is something to be happy about, because new pain means a new morphine dose. This can continue deep into the throes of addiction. It can continue until smiling death. It appears the stock market has become addicted to the blissed-out high of fiscal and monetary
