Here's a Way to Bet on High-Conviction Value Picks
Justin Kuepper
|
While there are many value-focused ETFs, active funds have the flexibility to pinpoint...
While overcoming your own thoughts can be a difficult proposition—even experts behavioral finance still fall victim to these things—knowing what pitfalls abound is a major step in combating the problem. Here at MutualFunds.com, we’ve prepared a look at the seven biggest behavioral biases and how they affect your portfolio choices.
Be sure to also see the 25 Tips Every Mutual Fund Investor Should Know.
When we invest, we need to remember that what happened yesterday or last week may or may not be part of the long-term trend.
Overcoming choice paralysis is relatively easy. You need to not be intimidated by all your choice. Use tools like screeners, read the various fund literature, and invest.
See our list of the Best 25 Online Tools for Mutual Fund Investors.
Herding is precisely why value investing works for some investors. By not following what the market is doing and by buying the opposite, investors are able to profit when the tide shifts. It can be difficult to do, but it will ultimately be worth it.
The easiest way to overcome loss aversion is to stay focused on your goals, timeline and analysis. The longer your timeline, the easier it is overcome your fear of loss.
See also the 7 Biggest Mistakes to Avoid When Investing in Mutual Funds.
Overcoming confirmation is as simple as reading, watching and understanding all the data available, while making sure that there is at least one source that can be a “dissenting voice of reason.” You need a contrary viewpoint to be successful.
It’s OK to be happy with your portfolio’s recent performance, but you need to remember that any future investment picks need to be fully analyzed before you pull the trigger. You’re not perfect and you do and can make poor decisions.
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Receive email updates about best performers, news, CE accredited webcasts and more.
Justin Kuepper
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While overcoming your own thoughts can be a difficult proposition—even experts behavioral finance still fall victim to these things—knowing what pitfalls abound is a major step in combating the problem. Here at MutualFunds.com, we’ve prepared a look at the seven biggest behavioral biases and how they affect your portfolio choices.
Be sure to also see the 25 Tips Every Mutual Fund Investor Should Know.
When we invest, we need to remember that what happened yesterday or last week may or may not be part of the long-term trend.
Overcoming choice paralysis is relatively easy. You need to not be intimidated by all your choice. Use tools like screeners, read the various fund literature, and invest.
See our list of the Best 25 Online Tools for Mutual Fund Investors.
Herding is precisely why value investing works for some investors. By not following what the market is doing and by buying the opposite, investors are able to profit when the tide shifts. It can be difficult to do, but it will ultimately be worth it.
The easiest way to overcome loss aversion is to stay focused on your goals, timeline and analysis. The longer your timeline, the easier it is overcome your fear of loss.
See also the 7 Biggest Mistakes to Avoid When Investing in Mutual Funds.
Overcoming confirmation is as simple as reading, watching and understanding all the data available, while making sure that there is at least one source that can be a “dissenting voice of reason.” You need a contrary viewpoint to be successful.
It’s OK to be happy with your portfolio’s recent performance, but you need to remember that any future investment picks need to be fully analyzed before you pull the trigger. You’re not perfect and you do and can make poor decisions.
If you’ve enjoyed this article, sign up for the free MutualFunds.com newsletter; we’ll send you similar content weekly.
Receive email updates about best performers, news, CE accredited webcasts and more.
Justin Kuepper
|
While there are many value-focused ETFs, active funds have the flexibility to pinpoint...
Aaron Levitt
|
Despite all the backlash and recent laws in several states condemning ESG, the...
News
Justin Kuepper
|
Short-term Treasuries could offer a near-term safe haven, protecting investors from recession-related risks...
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...