image_pdfimage_print

Emotional Investing Decisions

On 01/19/2012, in Investment Strategies, by Jordan Wilson

Investing based on emotions or instincts is a difficult issue.

So challenging that an entire field, Behavioural Finance, examines how investor psychology and emotions affect investment decisions.

Recently I read an article where the author believes that financial planners prefer clients with little investment knowledge. That way, it is easier to sell them whatever you want.

Yes, there are financial planners, brokers, etc., that operate this way. But in my experience, good financial planners would rather deal with well-educated investors.

And often the reason relates directly to emotional investing. 

Continue reading »

Avoiding an investment bubble is not as easy as it may seem. If it were, investors would take appropriate steps and the bubble would never be created in the first place.

So what can you do to avoid losing a lot of money quickly?  Let us consider some common sense avoidance tips.

Continue reading »

Learning to Spot an Investment Bubble

On 01/07/2010, in Investment Concepts, by Jordan Wilson

Learning how to invest while young is likely the best investment in time you will ever make. You can attempt a variety of strategies on paper. If they succeed, they may be used with real money once you have some to invest. If they do not, you learn a valuable lesson without losing any money.

Today, let us look at ways to practice identifying investment bubbles.  

Continue reading »

Investment Bubbles

On 12/21/2009, in Investment Concepts, by Jordan Wilson

Following on from “Three Common Investment Mistakes” and the impact of behavioural finance on investing, let’s take a quick look at investment bubbles.

Most of you are familiar with the US housing crash over recent years. Some of you may also remember the dot.com craze in the 1990s. Those would be examples of bubbles breaking.

In his very interesting work, The Ascent of Money, Niall Ferguson lists 5 stages of an investment bubble. The headers are his. The editorializing is all mine. So do not blame Niall.

Continue reading »

Many people think that investing is all about calculations and analysis. Poring through financial statements, expert analysis, and news releases to determine the best investments.

While true to a certain degree, investor behaviour also has a tremendous impact on portfolio returns. At times I think behaviour has more clout than either technical or fundamental analysis.

Continue reading »

© 2009-2017 Personal Wealth Management All Rights Reserved -- Copyright notice by Blog Copyright