The Psychology of Investor Behavior (part2/2)
Scott Bosworth, CFA, Vice President of Dimensional Fund Advisors presents Part Two of The Psychology of Investor Behavior Video Series (Behavioral Finance). Some topics:
-) Words on Eugene F. Fama, Richard Thaler, John Maynard Keynes, Daniel Kahneman
-) Is Market Efficiency a Myth? (Justin Fox / The Myth of the Rational Market)
-) Are Magazine Covers Good at Picking Stocks?
-) Overconfidence
quote by John Maynard Keynes: "The market can stay irrational longer than you can stay solvent"
Scott breaks down the relationship between risk and expected ...
The Psychology of Investor Behavior (part1/2)
Scott Bosworth, CFA, Vice President of Dimensional Fund Advisors presents Part One of The Psychology of Investor Behavior Video Series (Behavioral Finance). Some topics:
-) Are we working against ourselves when we invest?
-) Do our instincts betray our own decision making process?
-) Threats (Fear) and Opportunities (Greed / "the next door neighbour effect")
-) Market bubbles (Tulip Mania, South Sea Bubble)
-) explanation on Attribution Bias, Confirmation Errors, Anchoring & Extrapolation, Familiarity Bias like the Home Bias
-) Irrational ...
Topics covered in this Behavioral Finance-video:
In this episode of Symmetry Shorts, Symmetry's John McDermott, Ph.D., describes how investor overconfidence, self-bias, and perceived control can lead to negative outcomes.
John explains that Decision-Making and the outcomes involve internal factors (skill, hard work, intelligence) but also external factors like luck.
Paul Craven, well known presenter on Behavioral Finance topics (< 22 Min. - Video)
"from biases to bubbles"
Some of us are highly loss averse, but in general we’re all averse to losses to some degree. Empirical estimates find that losses are felt between two and two-and-a-half as strongly as gains. Thus the disutility of losing $100 is at least twice the utility of gaining $100. Evenutally loss ...
Anchoring (heuristic)
Anchoring is a particular form of priming effect whereby initial exposure to a number serves as a reference point and influences subsequent judgments about value. The process usually occurs without our awareness (Tversky & Kahneman, 1974), and sometimes it occurs when ...