Archive for the ‘Behavioral Finance’ Category

Dow Jones Closes At All Time High

Wednesday, March 6th, 2013 by Cass Chappell, CFP®

As you have probably heard, the Dow Jones Industrial Average closed at an all-time high yesterday (14,253.77).  The previous high was achieved way back on October 9th, 2007 (14,164.53).  If you ... more »

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“Broke”- It Would Probably Happen to You, Too

Monday, February 4th, 2013 by Cass Chappell, CFP®

Summary: Athletes earn their money very quickly. Their careers don’t last very long. They are very young when they retire and have unusually long “distribution phases”. Since they usually don’t earn ... more »

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Behavioral Finance – Mental Accounting

Monday, November 30th, 2009 by Cass Chappell, CFP®

In my experience, Mental Accounting is by far the most common bias exhibited by investors.  It can also do the most harm to an otherwise well conceived financial plan. Basically, it works ... more »

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Behavioral Finance – Investor Biases

Monday, November 23rd, 2009 by Cass Chappell, CFP®

        There is a popular indicator of investor sentiment that follows the net inflows and outflows into certain investments.  In a nutshell, it goes like this: o       When investor inflows are at their ... more »

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Behavioral Finance – Prospect Theory

Monday, November 9th, 2009 by Cass Chappell, CFP®

      The last two years have exposed a lifetime of emotions for most investors.  Plummeting markets brought fear.  Those who held the course were rewarded with a strong, rapid recovery bringing a ... more »

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