Have you ever wondered:
- What do most investors have in common with football?
- Would you have swooned for “tulip mania” in the 17th century?
- Is Loss Aversion Really just about Dodging Water Hazards?
- Why investors rather put money in the bank earning low yields, while the real threat of inflation is taking bite of their purchasing power?
We like to think we invest rationally, but the field of behavioral finance has shown that there are social, emotional, and even cognitive factors that can affect our investing decisions. By becoming aware of these unconscious tendencies, we have a better chance of meeting our long-term investing goals.
Fund manager Franklin Templeton has produced a series of fun and short videos to educate investors about behavioral finance. Watch them by clicking the image now