Posts filed under “Psychology”
I was on vacation this past week, but I happened to be up early Thursday, and junkie that I am, flipped on CNBC; I posted these comments early — Terror Attack in London — and then emailed them to my traders, sales people, brokers and mailing list. They got fairly carried widely in the MSM.
• Wikipedia has a fairly comprehensive overview of what happened when;
• The WSJ had an interesting look at Post-Terror Market Responses looking at the Embassy bombings in Kenyan/Tanzania, the Yemen USS Cole attack, and the Madrid train bombings; (if no WSJ subscription, click here);
That’s an overview of some recent thoughts and resources on London 7/7, and its impact on Markets.
From R. Douglas Van Eaton, CFA, professor of finance in the
College of Business Administration at the University of North Texas, discusses common investor errors:
Fear of regret/pain of regret
Myopic risk aversion
Van Eaton notes" A better understanding of the psychology of investor mistakes can
reduce their effects on investment decisions. Here is a list of the
most common psychological effects, and how you can reduce their impact
and incorporate them into your own investment decisions."
The full piece is below.
The Psychology Behind Common Investor Mistakes
R. Douglas Van Eaton