Quick question: which behavioral bias do you think is the most dangerous?
Is it our tendency to follow the herd and chase trends? (This one plays out a lot in the stock market.) Maybe the human desire to avoid losses even at the expense of the bigger picture? (Another one that hurts investors.) Perhaps our propensity to oversimplify complex information to get easy answers? (Something we should keep in mind when watching the news.)
Ever find yourself scrolling through social media or watching the news, and suddenly you're feeling the weight of the world on your shoulders?
Yeah, it happens to the best of us.
I've put together a video—short, sweet, and right to the point—about staying grounded amidst the whirlwind of negative news and updates that flood our daily lives. Hope this helps!
The S&P 500 broke the 5,000 level recently for the first time in history as investors embraced euphoria and rallied. (1) And then tumbled as investors got jittery. (2) Then yo-yo'd a bit more.
What’s going on?
Let’s talk about investor psychology.
Fear and greed are the two halves of the investor psychology coin.
