Behavioral Finance Articles

The Sound of Silence: Speaking to the Heart of Money Management

September 2016 by Sarah Newcomb
Discussing our attitudes toward money can result in healthier relationships and leave a better, lasting legacy with our heirs. Read more »

The Traits and Processes That Lead to Better Forecasts

September 2016 by Charles Rotblut
Tetlock’s analysis of forecasting tournaments found that the best forecasters are open-minded and able to distinguish between many degrees of uncertainty. Read more »

The Traits and Processes That Lead to Better Forecasts

September 2016 by Philip Tetlock
Tetlock’s analysis of forecasting tournaments found that the best forecasters are open-minded and able to distinguish between many degrees of uncertainty. Read more »

Avoiding the Mistakes Made by Ineffective Investors

July 2016 by Spencer Jakab
Among the ways investors often hurt themselves are chasing after IPOs, reaching for yield and not understanding what they are buying. Read more »

Defining Your Investment Philosophy

November 2015 by Ben Carlson
An investment philosophy can help you make better decisions. Ten questions for defining your own personal philosophy. Read more »

Investing Strategies for an Irrational Brain

October 2015 by Charles Rotblut
The human brain often does not make profit-maximizing decisions, but these actionable strategies can help avoid behavioral errors. Read more »

Being a Contrarian Means Thinking Differently

July 2015 by Ken Fisher
Contrarians don’t take the opposite view of the consensus, but think differently, act independently and question assumptions. Read more »

Understanding Asset Bubbles and How to React to Them

June 2015 by Charles Rotblut
Bubbles are based on stories, and the stories always change. Nonetheless, diversification and common sense can help protect you. Read more »

Understanding Asset Bubbles and How to React to Them

June 2015 by Robert Shiller
Bubbles are based on stories, and the stories always change. Nonetheless, diversification and common sense can help protect you. Read more »

Trading More Frequently Leads to Worse Returns

November 2014 by Charles Rotblut
The stocks investors buy, on average, underperform the ones they sell due to behavioral errors, such as overconfidence. Read more »

Trading More Frequently Leads to Worse Returns

November 2014 by Terrance Odean
The stocks investors buy, on average, underperform the ones they sell due to behavioral errors, such as overconfidence. Read more »

Driving Emotions From Your Investment Process: A 12-Step Program

September 2014 by Thomas Howard
These 12 steps, which include forgetting the price paid for an investment, can drive emotions out of your investment decision process. Read more »

The Case for Systematic Decision-Making

April 2014 by Wesley Gray
Though human expertise is needed to design models, models perform better than humans because they aren’t subject to behavioral biases. Read more »

The Role of Luck and Skill in Investing

September 2013 by Charles Rotblut
Since luck plays a bigger role than skill in influencing investment returns, investors need to focus on their portfolio management process. Read more »

The Role of Luck and Skill in Investing

September 2013 by Michael Mauboussin
Since luck plays a bigger role than skill in influencing investment returns, investors need to focus on their portfolio management process. Read more »

Five Steps for Gaining Control of Your Investments and Avoiding Mistakes

March 2013 by Carl Richards
Simple actions you can take now to focus on the things you can control and avoid making common investment mistakes. Read more »

How Investors Miss Big Profits

October 2012 by Louis Harvey
Individual investors underperform the mutual funds they invest in, but they can take advantage of psychological behaviors to improve their returns. Read more »

The Good Investor Rule: Focus on How Not to Lose Money

July 2012 by Steven Sears
Many investors place on emphasis on making money, but successful investors focus more on how not to lose money. Read more »

Behavioral Errors Hurt Your Returns

July 2012 by Daniel Kahneman
Individual investors hurt their performance by buying and selling too often, picking the wrong securities to trade, and being overconfident. Read more »

Dishonesty, Choices and Investing

June 2012 by Charles Rotblut
The financial industry’s bad incentive structure leads to higher costs, but investors can counteract dishonesty simply by asking direct questions. Read more »

Dishonesty, Choices and Investing

June 2012 by Dan Ariely
The financial industry’s bad incentive structure leads to higher costs, but investors can counteract dishonesty simply by asking direct questions. Read more »

Updating Modern Portfolio Theory for Investor Behavior

April 2012 by Greg Davies
The optimum portfolio is not only based on the expected risk and return of the investments, but considers an investor’s tolerance for risk. Read more »

Updating Modern Portfolio Theory for Investor Behavior

April 2012 by Arnaud Servigny
The optimum portfolio is not only based on the expected risk and return of the investments, but considers an investor’s tolerance for risk. Read more »

Aging and Investing: The Risk of Cognitive Impairment

September 2011 by David Laibson
Cognitive impairment afflicts approximately half of all 80-year-olds. However, there are steps investors can take to protect themselves financially. Read more »



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