Behavioral Biases – Part III

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We’re coming in for a landing on our alphabetic run-down of behavioral biases. We’ll wrap our series, the ABCs of Behavioral Biases, by repeating our initial premise: Your own behavioral biases are often the greatest threat to your financial well-being. Exhibit 1, attached, is a helpful summary of the biases we’ve covered throughout this series. Today, we’ll present the final line-up: ...

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Behavioral Biases (Part II)

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Let’s continue our alphabetic tour of common behavioral biases that distract otherwise rational investors from making best choices about their wealth. There are so many investment-impacting behavioral biases, we could probably identify at least one for nearly every letter in the alphabet. As Warren Buffett has famously said, “Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should ...

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An Index Overview Part II: Index Points and Mechanics

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As we covered in our last piece, indices have their place. They can roughly gauge the mood of a market and its participants. If you have an investment strategy designed to capture that market, you can see how your strategy is doing in comparison … again, roughly. You can also invest in an index fund which tracks a market index.

This may help explain why everyone seems to be forever watching, analyzing and ...

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Stock Market Index – Part I: Indices, Defined

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The Dow Jones Industrial Average topped 20,000 for the first time on January 25, 2017, but you probably already knew that as every media outlet went crazy reporting the “news”. But when a popular index like the Dow is on a tear, up or down, what does it really mean to you and your investments?

That’s the real question we need to ask ourselves.

In this multi-part series, we’re going to cover some of the ...

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