VOICES FROM THE INDUSTRY: Investors often end up being their own worst enemies
In recent years, an increasing number of researchers, particularly in the field of psychology, have come to believe that investors undermine their investment and financial goals through such emotionally biased-even irrational-behaviors as overconfidence, a herd mentality, bias toward recent market results, and an excessive aversion to risk. Eliminating such biases is difficult, but investors can mitigate their impact by following several time-tested investing and financial planning principles. Think long term Invest for the long term. Investing in riskier assets, such…