Blog

Investment Pyschology

Loving the Unloved

The legendary investor, Sir John Templeton, said:
?People are always asking me: Where is the outlook good? But that’s the wrong question. The right question is: Where is the outlook most miserable??

Find out why normally rational people first lose heart, then hope, before stampeding of cheap and into expensive investments ? and discover which well-known institution made a very embarrassing public capitulation in exactly this way…

Investment strategy

Hidden bounty behind the oil price’s siren call

Something strange is happening. Since December, on days that the oil price falls, stockmarket prices fall too. On days that the oil price goes up, share prices rise with it.

This extraordinary correlation is illogical: investors are behaving as if cheap oil is blanket bad news for every industry (and economy) across the globe.

That’s obviously nonsensical ? which exposes an obvious opportunity for calm, logical investors.

Behavioral Finance

Using the ?cuddle drug’ to improve your portfolio

Oxytocin (a hormone also known as the ‘cuddle drug’) is both a nuisance and a help when you’re investing. Understanding how oxytocin affects your feelings can make you a calmer, clearer investor.

Psychology

Invest like a pigeon

Replicate the canny actions of the pigeons in this lab experiment to get much better investment returns than other humans will.

Psychology

Scaremongering headlines are irresponsible financial journalism

Enough sensationalism. Investors have a hard enough time keeping emotions sufficiently in check to make good, rational investment decisions. Inaccurate, scaremongering headlines needlessly fuel the flames of investor emotions.

Strategy and Psychology

The millionaires next door

A mere 16% of the world’s millionaires inherited their wealth. See how the majority of millionaires achieved their wealth through financial discipline and intelligent investing – on far less than movie star earnings.

Strategic planning

Tough love on retirement thinking

The official ‘retirement age’ of 65 has nothing to do with having earned a break: it was a politically motivated concept dreamed up in 1889. But we live an average 17 years longer now. Find out what this means for you in your retirement.

Psychology

How Warren Buffet’s sense of humour made him rich

Find out how Warren Buffet’s natural optimism protects him from Confirmation Bias and helps him find profits by distinguishing the wood from the trees.

Crowd psychology

What the runaway success of Chicken’s Facebook page can teach you about investing

Chicken’s cute Facebook page is a sweet nod to the playful side of human nature. But it can also teach you a lot about the dangerous habit of investment herding.