So, let's stop pretending that the market knows and better yet, stop reacting to the fear (and greed) created by your sense that the market "knows" and get back to knowing what you own and why you own it.
Investor BehaviorA -post collection
The leading behavioral investment mistake By Thomas Oberlechner, Chief Science Officer, TheHintBox!,Inc, a related company Biography: Thomas Oberlechner, Ph.D. Dr. Oberlechner is Chief Scientist at TheHintBox!,Inc, a related company to Intellectus Partners. He is also founder and partner of FinPsy LLC, a San Francisco based behavioral consultancy. He helps decision-makers in finance and investment integrate state-of-the art behavioral expertise into their decisions, products, and organizations. Dr. Oberlechner is a leading expert on behavioral and psychological aspects of financial decisionmaking. While previously Chief Science Officer at iMatchative, he developed decision support systems for investors and hedge fund managers that add novel behavioral dimensions to the financial hedge fund data traditionally available. These systems provide investors and fund managers with deep insight into behavioral preferences,
It's Your Brain, Man... According to research firm Dalbar, Inc. Behavior is the number one cause of investor underperformance. At Intellectus,along with key partners, we are in the midst of some very extensive work on investor behavior. According to our friend Dr. Thomas Oberlechner, former MIT and Harvard Behavioral economist and Senior psychologist to some of the worlds top hedge funds, more than 25% of an average investor return can be attributed to his or her behaviors. That is more than 2x the cost of "fees" per se. Our work has taken us into the realm of research and technology builds to discover behavioral biases and impact upon investing. This research is being turned into algorithms that can extract amazing insights and hints