In my Saturday post, I ordinarily offer up a pearl of wisdom or two from Barry Ritholtz's finance column, "The Big Picture," as featured in The Washington Post and the Wall Street Journal. Tonight however I offer this terrific program, courtesy of PBS and Consuela Mack's WealthTrack series, on behavioral finance and one expert's take on why so many smart people make so many dumb decisions when it comes to their investments.
Specifically the analysis focuses on why individual returns for the past eight years have been so poor while the mutual funds they are in have been doing so well. It's because they buy high and sell low. This program seeks to shed light on why the psychology of investing is often so counter-intuitive and leads otherwise very smart souls down this very wrong path -- and, of course, how to avoid it. Hope everyone is enjoying this mild but wet weekend.
GREENBLATT: HYBRID INVESTING - WealthTrack : WealthTrack
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