Data, math and a logical decision\u002Dmaking process lead to superior results over the long term, writes Noah Solomon. Read more.
Let’s take a look at some of the more common behavioural pitfalls that investors would be well-advised to avoid when making decisions.This is the tendency of people to pay close attention to information that confirms their beliefs and ignore information that contradicts it. Our natural tendency is to listen to people who agree with us because it feels good to hear our opinions reflected to us. We first construct hypotheses, and then subsequently look for information that supports them.
For example, the Nasdaq from 1996 to 2000 exploded to 4,131 points from 1,058. Many companies in the index had little or no earnings, yet their stock prices were increasing at a parabolic rate. Investors feared that if they didn’t get in, they would miss out. The dotcom bubble then burst, and trillions of dollars of investor wealth vanished as the Nasdaq plunged to less than 2,000 points by the end of 2001.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Noah Solomon: Six self-defeating behaviours that get investors suboptimal resultsData, math and a logical decision\u002Dmaking process lead to superior results over the long term, writes Noah Solomon. Read more.
Read more »
Noah Solomon: Six self-defeating behaviours that get investors suboptimal resultsData, math and a logical decision\u002Dmaking process lead to superior results over the long term, writes Noah Solomon. Read more.
Read more »
McIntyre: Taxpayers deserve better data transparencyGreater Sudbury has an open data policy, says Ward 12 candidate Jeff McIntyre, but continues to ignore it to the detriment of taxpayers
Read more »
In Canada, the Great Resignation never actually happenedJob\u002Dchanging rates among Canadians are mostly similar to pre\u002Dpandemic levels, data show. Find out more
Read more »
In Canada, the Great Resignation never actually happenedJob\u002Dchanging rates among Canadians are mostly similar to pre\u002Dpandemic levels, data show. Find out more
Read more »