Tag: biases’

12 DEC

4 mental biases that color the way people think about money

Carlos Barria/Reuters People tend to make irrational decisions with money.  Behavioral economist Richard Thaler, who won the 2017 Nobel Prize in Economic Sciences, studied and identified why people make illogical financial decisions. He found that there are a few mental biases — such as the endowment effect, mental accounting, overconfidence, and status quo bias — […]

14 APR

A financial adviser explains 8 common biases that may be impacting your investment decisions

Paramount One of the biggest challenges to our own success can be our own instinctive behavioral biases. In previously discussing behavioral finance, I focused on four common personality types of investors. Now let’s focus on the common behavioral biases that affect our investment decisions. The concept of behavioral finance helps us recognize our natural biases that […]