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December 3, 2018

Unconscious bias can cost you when it comes to making investment decisions

  • Behavioral economics says the “endowment effect” causes people to overvalue something simply because they own it — and cling to a stock that's tanking.

    Looking for someone to blame for the not-so-stellar performance of your investment portfolio? Try checking the mirror.

    Decisions about money aren't always rational, even when we think we're acting logically. Common tendencies that make us our own worst enemies when investing include: selling winning investments too soon or holding onto losers for too long, loading up on too-similar assets or failing to assess the future implications of today's decisions.

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