mickeyd
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
http://www.bankrate.com/brm/news/investing/20060724a1.asp?caret=1
What happens when financial theory intersects with flawed human beings who are motivated not by pure rationality, but by personal and brand-name loyalties and the twin engines of fear and greed?
Behavioral finance experts have studied the problem and have found that, far from being rational, investors in the real world are often wracked by extreme emotional disturbances. Most mental maladies fall into two broad categories: narcissistic delusions and loss-avoidance disorders. These conditions afflict investors just like us. But we can do things to inoculate ourselves against them.
Being a big Bogle/Vanguard fan, I wonder if I have not fallen into this abyss and may be somehow emotionally linked to VG too damn much? Is this a forest/trees situation that I find myself in without realizing it?
What happens when financial theory intersects with flawed human beings who are motivated not by pure rationality, but by personal and brand-name loyalties and the twin engines of fear and greed?
Behavioral finance experts have studied the problem and have found that, far from being rational, investors in the real world are often wracked by extreme emotional disturbances. Most mental maladies fall into two broad categories: narcissistic delusions and loss-avoidance disorders. These conditions afflict investors just like us. But we can do things to inoculate ourselves against them.
Being a big Bogle/Vanguard fan, I wonder if I have not fallen into this abyss and may be somehow emotionally linked to VG too damn much? Is this a forest/trees situation that I find myself in without realizing it?