One of the most common behavioral biases, confirmation bias is when you determine your conclusion and then gather evidence to back it up. Mindful investors gather evidence first and then make decisions based on the weight of that evidence.
Be Mindful the Rest of the Time
Years ago, my wife and I were really into a TV show called The Biggest Loser. If you’ve never heard of it, the general premise was essentially a couple of personal trainers and fitness experts were featured on the show every week helping a group of people struggling with weight loss and body image. Over the course of the season you would see these individuals go through a dramatic multi-month transformation 30 minutes at a time, as they developed better habits and unwound destructive ones. Overall, it was pretty enjoyable to see people improve their lives, many of whom had come from very dark places not just physically, but emotionally and spiritually.
Remembering Tony Tabell
A Failure of Imagination
Bear Markets and Bike Riding
But the current market environment, with all its volatility and unexpected moves, reflects riding a bike around Washington. There are times you have to work really hard, and times when you can ease off a bit. There are big uphill and downhill moves, and it’s almost like riding around with your eyes closed in a lot of ways.
Overcoming the Endowment Effect
Given the uncertainty in the world right now both in the markets and with life in general, I seem to be getting more questions than usual submitted to the mailbag for The Final Bar on StockCharts TV. We run a mailbag segment twice a week, and it’s really a great opportunity for me to help people along in their journey of navigating the markets.
It's All in the Details
“A man’s accomplishments in life are the cumulative effect of his attention to detail.”
That’s a quote from John Foster Dulles, and if you don’t know him, you may be familiar with Washington Dulles airport which was named after him. Dulles was the Secretary of State under President Eisenhower in the 1950s.
To be honest, this quote has always bothered me. Why? I am not a detail-oriented person. At. All.
What "Work" Actually Means
Two Ways to Fight FOMO
FOMO is something we’ve talked about in investing for awhile now, especially after more than a decade of bull markets in stocks. FOMO, or the Fear Of Missing Out, is what is motivating investors to continue to buy stocks on the way up- this idea that stock prices could go to the moon and they don’t want to miss out …
Dealing with Bear Markets
In case you’ve missed it, we have recently found ourselves in a bear market environment.
The first quote I want to share with you about this market environment is,
“Bull markets are great, but they breed complacency. Bear markets can be energizing. Instead of fretting over the decline in your net worth think opportunistically about all of those bargains and the potential gains when inevitably a bull market returns.” – James B. Stewart