behavioral finance

As I'm sure you've noticed by now, this has not been a great year for stock and bond markets. Most stock markets are now in what is technically defined as a correction. With all the volatility, negative news stories, and predictions of doom, I thought it would be helpful to look back over the history of market corrections to put this one into perspective. 

New year, new market? Maybe, maybe not. With last year's strong market performance globally, many investors are asking if it's time to get in or get out. 

This week I was quoted in InvestmentNews on this very topic. Here's what I had to say: 

When it comes to investing, people can be their own worst enemy. Nearly all of the mistakes made by investors can be attributed to their behavior which is typically dictated by their emotions. Fear and greed have a way of driving even the most rational people to making investing decision which is why most investors typically under perform the markets.

Next to the IRS, the most formidable and intimidating institutions people will face are the insurance companies and the medical care complex. Both are at the root of increasing medical costs and both are intent on making sure their bottom lines are forever expanding. Never mind that high medical bills are the number one cause of bankruptcies in the U.S.