Behavior Gap Newsletter Behavior Gap Sketches

How to Handle Your Investing Overconfidence @NYTimes

by Carl on March 8, 2010

Do you think it’s possible to be too confident? Today at the New York Times, I review the potential issues we face when overconfidence is combined with investing. We’ve watched “experts” and “geniuses” make this mistake, so what are the odds that average investors (you and me) won’t face the same risk? Asking two questions before you make a financial decision can often mean the difference between success and failure.

How to Handle Your Investing Overconfidence (New York Times)

  • Yes. You can easily be too overconfident. The uneducated masses are over confident - until the market reaches the lows, then they sell.

    The people who rely of being diversified are overconfident. they don't get how the modern world is all tied together and assets rise and fall in tandem - much more frequently than they did in the past.

    Asset allocation? A joke. Sure it helps, but not like in the good old days.

    What's needed/ Assurance. Guarantees that your assets are protected. It's available, but too few are aware that it's here and cheap.
blog comments powered by Disqus

Previous post:

Next post: