How investors go about making decisions in uncertain and volatile markets can have long-lasting implications, especially when bias and emotion enter in. The field of behavioral finance has shown that human beings can’t be presumed to take the most logical, rational approach to investing. So if not logic, just what is affecting our decisions?
A recent report
from Robert W. Baird & Co.’s Private Wealth Management Research team outlines psychological and social factors that affect how we make financial decisions.
Be aware of these factors to help you avoid some psychological pitfalls that regularly affect professional and amateur investors alike.
Source: Robert W. Baird & Co.’s Private Wealth Management Research