How much risk should you take with your investments? How you answer this question will have a tremendous impact on your short-term and long-term financial situation. Keep in mind that even though you have long and short -term financial needs, you also have emotional wants and needs too. If …
Robert Powell is a Research Fellow at the California Lutheran University’s “California Institute of Finance”. This article originally appeared on the February 9th, 2012 edition of Mr. Powell’s “Retirement blog” on MarketWatch. It reappears here with Mr. Powell’s permission. BOSTON (MarketWatch) — The financially savvy are truly different from the …
Somnath Basu writes about more layperson user-friendly terms that investment advisors could use to describe risk. He points out that common ways to describe investment risk, such as standard deviation, are based on statistics. These statistical descriptions of risk and loss aversion can be difficult for advisors to fully comprehend …
Mutter writes a thoughtful post on “Bubble Riders” on unexpectedutility.com He points out that as much as investors want to think that they can ‘time’ the bubble (i.e. exiting at the max), psychology works against them. Those that manage to get out at the top are probably simply lucky while …
Unwonted Candor takes a look at our human nature to constantly find patterns – even when patterns may not really exist. In our quest for patterns we may overlook other factors – such as causality or lack of evidence for it. Unwonted Candor notes that some investors are claiming to …
BBC News
CNN Money
Kiplinger
MarketWatch
Morning Star
Motley Fool
MSN Money