Dr Kahneman was asked what fools us most frequently. That was simple, he said: overconfidence
"It's the idea that you know better than the market, which is a very strange idea," Dr Kahneman told The Washington Post. "Individual investors have no business at all thinking they can do better."
So beware of low liquidity stocks and there are reasons for being unloved by the market unless you think Dr Kahneman is talking rubbish.
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GBP/JPY holds below 192.00 following UK Retail Sales data
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GBP/JPY loses momentum around 191.65, down 0.31% on the day. The UK Retail
Sales came in at 0% MoM in March from a 0.1% rise in the previous reading,
weak...
1 hour ago
True to some extent, i guess this is one of the main reasons to go with Index investing.
ReplyDeleteBtw...any idea if this Dr Kahneman is referring to Daniel Kahneman? If i'm not wrong, i think alot of research on "value" is based on his work many years ago.
Princeton University psychologist Daniel Kahneman was awarded the Nobel Prize in Economics for, as the Swedes put it, integrating "insights from psychology into economics, thereby laying the foundation for a new field of research."
ReplyDeleteYup, that's him i guess. ;)
ReplyDelete