Posts filed under “Psychology”

Terror & Markets Round Up

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;

Flickr has lots of photos from on the ground, tagged 7/7 Community (formerly London Bomb Blasts);

• The Stock Trader’s Almanac looked at the history of How Crises Impact Markets;

• 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);

• Both the WSJ and the NYT  showed minute by minute reactions  to the attack in London (if no WSJ subscription, click here);

•  There is a very specific reason why I approach this subject with a "Clinical Objectivity;" For some insight into why, read this: The Goal of Terror & the Global Economy   

That’s an overview of some recent thoughts and resources on London 7/7, and its impact on Markets.

Category: Markets, Psychology, War/Defense

The Goal of Terror & the Global Economy

Category: Economy, Psychology, War/Defense

How Crises Impact Markets

Category: Markets, Psychology

How Markets React and Recover

Category: Markets, Psychology

The Megabubble Poll

Category: Commodities, Economy, Markets, Psychology, Real Estate

More on Post-Terror Market Responses

Category: Markets, Psychology

Understand the “Clinical Objectivity”

Category: Psychology, War/Defense

Post-Terror Market Responses

Category: Investing, Markets, Psychology, War/Defense

Terror Attack in London

Category: Investing, Psychology

The Psychology Behind Common Investor Mistakes

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:

Overconfidence

Fear of regret/pain of regret

Cognitive dissonance

Anchoring

Representativeness

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.

>

Source:
The Psychology Behind Common Investor Mistakes
R. Douglas Van Eaton
AAII Journal
http://www.aaii.com/promo/evergreen/basics/jrnl200004p02.cfm

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Category: Psychology