There’s a moment many investors recognize. A sector is surging. A fund is outperforming. An investment seems to be winning everywhere you look. The urge to invest feels obvious. It feels less like speculation and more like catching up. That’s often recency bias in investing, and it can become one of the most expensive behavioral … Read more
“Don’t put all your eggs in one basket” is advice everyone nods along to and almost nobody applies correctly. The people most likely to break the rule are often the most successful: executives paid in company stock, longtime employees with a 401(k) full of their employer’s shares, and founders whose wealth is tied up in … Read more
Everyone has met someone who claims they got out right before a downturn and back in right before the recovery. What you rarely hear about are the other nine times that same instinct got it wrong. The urge to get out gets loudest in the last few years before retirement, when a market drop feels … Read more
When people think about investing, stocks usually get all the attention. They’re exciting, discussed on the news and often responsible for the biggest gains in a portfolio. But if stocks are the engine of a portfolio, bonds are the suspension system. You may not notice them every day, but when the road gets rough, you’re … Read more
A market drops 3% in a week and it feels like the beginning of something bad. A market climbs 3% in a week and it barely registers. That imbalance isn’t a coincidence, and it isn’t a personal flaw. It’s called loss aversion: the tendency to feel losses far more sharply than gains of the same … Read more