A bird in the hand is worth two in the bush.[1] In investing, this describes investors’ preference for dividends (the bird in the hand) relative to future price appreciation (two in the bush). While ...

Investing in the financial markets is a complex endeavor influenced not only by economic factors and market dynamics but also by human behavior. Traditional finance theory assumes that investors make ...

New Year’s is a traditional time to make resolutions and set goals. As behavioral economists know, it is also prime time for hyperbolic discounting. What is hyperbolic discounting? In daily life, it ...

Managing money can be a complex and emotional endeavor when it involves our family funds, but when it comes to those of the businesses we run, it is even more complicated. One wrong move and the ...

Market psychology represents a fascinating intersection between behavioral finance and investment strategy, unraveling the emotional and cognitive factors that drive investor behavior, thereby shaping ...

As Shiller suggests, the financial crisis of 2008–2009 seems to have given a major boost to behavioral finance theory, and its advocates are not shy in declaring victory. “If the argument is that ...

The Greater Fool Theory involves overpriced securities finding buyers among hopeful investors. Understand its impact on investing and possible risks involved.