Observations on
Psychology and the Markets
I recently commented that bond prices had completed a bullish continuation pattern, suggesting further upside for prices, and therefore, a further downside for interest rates. I received some pushback suggesting that interest rates were at all-lows. How could I possibly see further upside for bond prices?
When you check your portfolio to discover that your holdings are going down, or already in the red, how does that make you feel, physically? Likely, it is a slightly painful feeling and you get sweaty palms, feel lightheaded, get a weird feeling in the pit of your stomach, or maybe you feel pessimistic (or optimistic)?
Last week I did a webcast called “Better Routines Make Better Decisions“ about investor routines and how you approach the trading day. Most of us begin each day by grabbing a cup-of-Joe and sit down to begin our daily investment routines. In this webcast, I detail my morning ‘coffee routine’ and break down my exact process, which you can find here.
My wife tells me that I have way too many books at home. She is absolutely right. But for me, there is nothing quite like the feeling of digging into a good book, the sense of accomplishment for reaching the final page, the inspiration that comes from getting inside an author’s head for a short while.
Did you know that the lessons you learn when learning to play in instrument could also be applied to investing and the financial markets? It’s true.
In college (go Buckeyes) I studied music and psychology while pursuing my passion for music playing the trumpet and singing. Here I am, several years later and still trying to justify my music degree to my parents, however, I am eternally grateful for that time I spent studying music. While it was not easy, it was absolutely full of rewards.
Financial media, specifically financial television, tends to get a bad reputation. People refer to it as noise and discuss how financial TV has a tendency to sensationalize things. Personally I don’t feel that this is a fair assessment, rather I think it is important to look at how you are using financial media to influence your own thoughts and beliefs on the market.
Fall is upon us and for many of us, that means the excitement of football season has finally arrived!
Being a life-long Cleveland Browns fan been a tough life. As someone who has grown up a Browns fan, seeing them leave Cleveland and the organization starting over it is always interesting to see how the team has developed each year.
