Behavioral Finance Archive

Why Correct Financial Advice Often Isn’t The Best Financial Advice

It’s nearly impossible to have a discussion about finance (or indeed, almost any topic) on the internet without getting into a shouting match over who’s advice is technically correct. The key word here is “technically,” since any financial recommendation that isn’t mathematically optimal is regarded as wrong. I suppose I can understand that point of view since

Anchoring At Work In The Financial Media

Cognitive biases are rampant in the world of financial journalism. These biases have far-reaching consequences because they affect they way people make decisions about money. One of the most common (and probably one of the most deleterious) is anchoring. What Is Anchoring? Photo Credit: Alex E. Proimos In case you don’t have time to read the