We are surrounded by a cacophony of media and purported “experts” trying to tell us how to make money in the investment markets. It’s human nature to think we can outsmart those around us. The problem is – research shows that following this type of advice is actually detrimental to your long-term investment success.
I recently moderated a panel on behavioral finance for the Financial Women of San Francisco. It’s a relatively new field that barely existed when I was in business school in the late 90s. Its basic premise is that people make irrational financial decisions due to their human biases.