Behavioral Finance

Below I include just a handful of the smear sheets which keep circulating around my name. As you can see, the people who post these things strongly encourage others to...

Anchoring bias.  People have a strong tendency to perceive prices as “belonging” within a range once that range has been previously established.  Anchoring refers to our propensity to attach our...

Herd behavior.   An experiment conducted at the University of Leeds showed that it takes a minority of just five per cent to influence a crowd’s direction – and that...

Confirmation bias.  In the finance world, investors will often over-emphasize information that supports his existing thesis while actively ignoring information which might discredit that thesis. When looking for new information,...