Dividends , Stocks

Don’t let anchoring tie you down

Today I wanted to touch on another common behavioral issue that most investors fall prey to, anchoring. I’ve commented previously on the behavior gap, how behavioral issues lead to investor under performance and specifically how more information often leads to worse investment performance. Anchoring is another behavioral pitfall for investors. I’ll describe what it is first and then show a…

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Portfolio

Mind the gap

**Image by Carl Richards, Buck’s Blog at the NYT. Check out the blog for more simple yet powerful investment messages. Behavior dominates investor under performance. As the simple yet powerful chart above so nicely illustrates investor returns are lower than the very investment classes they are invested in regardless of the absolute performance these asset classes. This is the so…

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