Don’t overreact to new information, and don’t let your biases impair your decisions.
Raife Giovinazzo is a partner and portfolio manager at Fuller & Thaler Asset Management, a firm that invests based on behavioral finance principles. He earned his PhD under Richard Thaler, who is the principal at the firm and winner of a 2017 Nobel prize for his work in behavioral economic theory.
Behavioral economics tells us that markets don’t behave rationally. Why not?
Humans ultimately make the decisions that drive the market, and humans aren’t perfect. It’s not that we’re stupid or overly emotional. It’s just that being human means that sometimes we’re going to make mistakes.
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Esta historia es de la edición January 2018 de Kiplinger's Personal Finance.
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