(Initially) I began writing this post when the Dow Jones was down 300 points on January 30, 2018. The previous day (January 29th), the Dow was down 177 points. Through January 30, 2018, the Dow Jones had not seen a 1% drop in 111 days, one of the longest runs in history. I remarked “as… [Read More] Over-Bought and Over-Sold Conditions
We believe that an investor's behavior can seriously impact their market returns. This category page is dedicated to informing our readers of certain behaviors that are known to damage investor's returns over time. We also discuss strategies to avoiding these damaging behaviors.
Why would anybody pay someone to evaluate their financial situation and not be truthful with that person? It seems like a waste of time, money and effort. Yet, we’re all guilty of doing this exact thing! We all go to various professionals for help several times a year and don’t do what they tell us… [Read More] The Self-Fiduciary
Last week, I read about a Netflix algorithm update that’s changing the way they serve program images to customers. In addition to curating your Netflix feed based on what you’ve previously watched, Netflix will now be showing unique program images that are also based upon your past preferences. Consider the following example from Thrillist: “You… [Read More] How Perception Shapes Reality
When we begin working with new clients, we try our best to explain investing is (to some small degree) a participation sport. Clients need to be involved! And for the most part, clients get it. I’d like to believe we do a good job of explaining what’s needed and we stay in good contact. But… [Read More] Coercion versus Changing Behavior
My dad used to tell me before my baseball games, “ya know Case, you play baseball against yourself”. I didn’t really get it at first. But the more he said it and explained it to me, the more I understood. You play baseball to the best of your abilities. If you do that, it doesn’t… [Read More] You Invest Against Yourself
On a recent episode of Hidden Brain, host Shankar Vedantam discusses a book by Alison Gopnik called The Gardener and the Carpenter. Alison uses an analogy between gardeners and carpenters to explain modern approaches to parenting. To summarize: Carpenters have the ability to make their workshops into an ideal creation space. They control many variables:… [Read More] Investors are Like Gardeners, Not Carpenters