mickeyd
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Pretty good piece on Behavioral Finance (BF) and Indexing. I can not seem to get enough info about BF, but combining it with indexing is sweet indeed. Here is what Dr. Bernstein has to add to the subject...
Behavioral Finance And Indexing -
JoI: If indexing is proven to provide the best odds for long-term success, why don't more investors index?
Bernstein: See my answers to the second question. The real mystery is just why both professionals and small investors think that asset management—active or passive—is so easy. No one in his right mind would walk into the cockpit of an airplane and try to fly it, or into an operating theater and open a belly. And yet they think nothing of managing their retirement assets. I've done all three, and I'm here to tell you that managing money is, in its most critical aspects (the quota of emotional discipline and quantitative ability required) even more demanding than the first two. I think that the reason for this is that unlike flying or surgery, investing seems easy—tap a few keystrokes, and hey presto, instant portfolio. It's almost as easy as turning on a chainsaw, but far more dangerous.
Behavioral Finance And Indexing -