article: behavioral investing..when investors blun
Hi all, This is part of the article as promised and you guys can search for this article on Bloomberg Markets.. or post your web email so I can forward it to you.. in PDF format and I don't know how upload it here... Cheers
By Adam Levy Every time investors sell winners or blindly follow the herd, behavioral finance theorists are poised to take advantage of them.
Most investors react too slowly to information that will boost stocks over the long haul. It’s one of many errors in judgment that investors make, according to Fuller & Thaler, and it’s among the missteps that are being exploited by a growing number of adherents to an investment discipline called behavioral finance. Fusing classical economic theory with studies about human psychology and the decision-making process, behavioral finance explores how investors systematically make judgment errors or mental mistakes. They follow the herd, trade excessively, become “anchored” to ideas and estimates, hold on to losing investments too long, sell winners too quickly and react to slowly to unexpected news. When they commit any of those sins, financial pros are poised to strike.....etc,
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