Posts filed under “Psychology”

Post-Terror Market Responses

Intriguing chart in the  WSJ  (we’ve discussed this several times previously). 

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.

Post-Terror Market Responses
click for larger graph



U.S. Stocks Stage Comeback
Wall Street Resilient After Attacks; ‘Learning to Live With Terrorism’
WSJ, July 7, 2005 5:43 p.m.,,SB112073445420279386,00.html

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:


Fear of regret/pain of regret

Cognitive dissonance



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
AAII Journal

Read More

Category: Psychology

Apprenticed Investor: Tracking Elephants, Part II

Category: Investing, Podcast, Psychology, Technical Analysis

Stop Blaming Oil!

Category: Commodities, Investing, Markets, Psychology

Weekend Linkfest

Category: Economy, Investing, Psychology, Real Estate

New Column up at Real Money (06/21/05)

Category: Commodities, Investing, Psychology

Confusing Sentiment Data

Category: Politics, Psychology, War/Defense

Will Rallying Oil Set a Bear Trap?

Category: Commodities, Markets, Psychology, Trading

Category: Psychology, Real Estate