This week, I’m digging deeper into human behaviors and biases that can and will affect your money. Let’s explore the phenomenon of Overconfidence Bias and lay out best practices to help you mitigate it.
Read nowBuckle up. This earnings week is unlike any that we've seen in a long time. We could see panic... or a frenzy of buying activity. The question is: What should you be doing right now?
Read nowBehavioral economics and psychology research show that human beings are TWICE as fearful about losing money as they are about winning money. This bias is known as loss aversion.. and it can and will stifle your ability to maximize returns in the stock market.
Read nowAt a congressional hearing in 1953, Charles Wilson, CEO of General Motors, said, "As goes GM, so goes the nation." America has changed 68 years later; One should now say, "As goes Apple, so goes the nation's stock market."
Read nowIt’s very common for investors to buy stocks that they see in the headlines. If you turn on CNBC, you’ll hear pundits rambling on and on about Facebook, Netflix, Alphabet, and McDonald’s. There’s nothing wrong with these companies. But when they’re all you hear about, the prospect of “familiarity bias” creeps into your mind.
Read nowYou only need to open your eyes to see that prices for nearly everything are rising. With rising prices, food manufacturers will pass on these rising commodity costs to protect their margins. Let’s check TradeSmith Finance for an idea that just emerged as a buy on Monday.
Read nowIf you're serious about making money in the markets, we have to talk about confirmation bias. Investors tend to seek specific information that "confirms" the things they believe or want to happen. They will ignore any information that refutes these beliefs.
Read nowOver the last two weeks, we've tackled your greatest enemy in the market – your subconscious. Let's look at one more bias that could impact not only your portfolio in 2021, but also your tax returns.
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