Posts filed under “Psychology”

CUBA Herzfield Caribbean Basin

In the announcement of US potentially normalizing relations with Cuba, the $33 million dollar closed end fund “Herzfield Caribbean Basin” — stock symbol CUBA — popped 40%:

 

click for ginormous chart
cuba

 

Here are its main holdings:

CUBA holdings

 

So much for those theories that investors are rational and markets are efficient . . .

 

UPDATE: Josh has the details here

Category: Markets, Psychology, Really, really bad calls

Folklore of Finance

I really enjoyed this report by State Street, which discusses how often Folklore dominates financial decision-making. Well worth the free download:     click for full PDF of research report Source: State Street Source: State Street

Category: ETFs, Investing, Psychology

Tony Robbins: 2014 vs 2010

  Tony Robbins is out promoting his new book, MONEY Master the Game: 7 Simple Steps to Financial Freedom. Based on who he interviews, I plan on giving it a read over the next holiday break. However, I was a little disappointed in this WSJ video interview with Tony Robbins, dated WSJ 11/19/2014 6:03PM. Within…Read More

Category: Consumer Spending, Economy, Psychology, Really, really bad calls

Once Again, the Gold Narrative Fails

Will they never learn? Yesterday, oil rallied 4.3 percent and gold gained 3.6 percent as commodities had an up day after a long and painful fall. The fascinating aspect of the trading wasn’t the $45 pop in gold, nor the even greater percentage rally in oil, but the accompanying narrative. (As of this writing, each…Read More

Category: Cognitive Foibles, Gold & Precious Metals, Psychology, Really, really bad calls

Timeline of Media Scare Stories

This is fascinating stuff; more on this next week.   Click for an interactive chart. Source: Information is Beautiful

Category: Digital Media, Media, Psychology

Your Brain Can’t Handle Green on the Screen

We have said a good deal in this space about the futility of trying to time short-term market moves (see e.g., this, this and this). No one has demonstrated the ability to do this consistently over time. While it is possible to avoid the very largest of collapses over long periods of time using a…Read More

Category: Cognitive Foibles, Psychology, Really, really bad calls

Common Mythconceptions

Source: Information Is Beautiful

Category: Digital Media, Psychology, Really, really bad calls, Web/Tech

The Beta In Your Life

Source: Artivest

Category: Investing, Psychology

Apparently, You CAN Buy (Some) Happiness

It looks as if you can buy happiness, after all. At least, in limited amounts, and up to a point. That seems to be the conclusion based on a recent survey by the Pew Research Center, part of the Pew Charitable Trust. Pew notes that Israel, the U.S., Germany and the U.K. have the happiest…Read More

Category: Economy, Psychology, Wages & Income

Disbelief in Equities is What is Driving Them Higher

As a fan of investor psychology, I find sentiment intriguing. Measuring it is a challenge. We can’t trust what people say because they become bullish after they buy and bearish after they sell, convincing themselves that past trades were the correct way to go. Humans are notorious liars — especially to themselves. When they are…Read More

Category: Investing, Psychology, Sentiment