Welcome, sign in or click here to subscribe.
Login: Password:
     
     


 

 

  Money


Subscriber content preview

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.
  • By ANNA-LOUISE JACKSON
    NerdWallet

    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.


     
    . . .


    To read this story in full login or purchase a subscription.



    --