Posts filed under “Psychology”
The Journal quotes Hugh Johnson (A terrific old old pro and chief investment officer at Johnson Illington Advisors). Hugh noted "We’re learning to live with terrorism."
It may be even more basic than that: Terrorism is a relative gnat to the Brontosaurus that is the global economy and capital markets.
U.S. Stocks Stage Comeback
By SCOTT PATTERSON
Wall Street Resilient After Attacks; ‘Learning to Live With Terrorism’
WSJ, July 7, 2005 5:43 p.m.
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