Gambling, trading, risk intolerance and investing
An investment is a favourable bet. Gambling is an unfavourable bet.
The danger of too low inflation
Prior to Covid the neutral interest rate had continued its long decline
A set of rules to develop a behavioral edge – Part 7
Subjective confidence in a judgment is not a reasoned evaluation of the probability that this judgment is correct
A set of rules to develop a behavioral edge – Part 6
The strong bias toward believing that small samples closely resemble the population from which they are drawn is also part of a larger story
A set of rules to develop a behavioral edge – Part 5
Our mind searches for confirming evidence that we are right and shies away from contrary evidence.
A set of rules to develop a behavioral edge – Part 4
Herding. All stock market prices are both the cause and result of herding behavior amongst investors.
A set of rules to develop a behavioral edge – Part 3
Our gut needs training. Many of our instinctive feelings are the exact opposite of what we should be doing.
A set of rules to develop a behavioral edge – Part 2
It is very important not to fall into the attractive trap of extrapolating the most recent past into the future.
A set of rules to develop a behavioral edge – Part 1
Today everyone is fretting about inflation and the potential for a recession. Trying to decide on the outlook for these macro-economic things can be a distraction.
Have a good read while we are away on holiday
The edge for investors is what I call the behavioral edge. You don’t need more data than everyone else. You don’t need to be smarter. You just need to master your own behavior.
You must be logged in to post a comment.