by Jason Apollo Voss | 22 09 2020 | Behavioral Bias Deep Dive, Blog
Last up in this series of deep dive articles on behavioral finance is mental accounting. Very generically, the bias describes some of the errors in judgment that occur when investors contextualize information. In this way it is similar to some of the other biases I...
by Jason Apollo Voss | 15 09 2020 | Behavioral Bias Deep Dive, Blog
We are now in the home stretch of my series of deep dive articles on behavioral finance. Up this week is representativeness bias. One complaint I have with some of behavioral finance is their changing of terms we all know and giving them new titles. This is especially...
by Jason Apollo Voss | 08 09 2020 | Behavioral Bias Deep Dive, Blog
Like the other biases in this behavioral finance deep dive series is a mental shortcut. Specifically, it is the phenomenon where people’s opinions and concerns are unduly shaped by immediate: information, mental models, and other things recently experienced....
by Jason Apollo Voss | 01 09 2020 | Behavioral Bias Deep Dive, Blog
Have you ever found yourself in a conversation stuck on a thought? If so, you are likely to have been in the midst of a discussion swallowed by anchoring bias. Anchoring is the fixation on a reference point within a continuum of information in decision making and is...
by Jason Apollo Voss | 25 08 2020 | Behavioral Bias Deep Dive, Blog
Why do markets form bubbles? Why do markets capitulate and collapse in value rapidly? Asked succinctly: why do investors engage in herding behavior? This is the fourth in a series of deep dive articles on behavioral finance and its major biases. Ultimately, I am going...
by Jason Apollo Voss | 18 08 2020 | Behavioral Bias Deep Dive, Blog
Up third in my deep dive articles on the crucial behavioral biases to understand as investors is this one on confirmation bias. Similar to the other biases, confirmation bias has nuances that if understood can change our approach to investing. This ensures we are not...