When it comes to investing, human biases often lead us astray. We have a natural tendency to react to recent news, a phenomenon known as recency bias. This can result in poor investment decisions, like selling stocks in a panic or buying into market hype. Listen in as Don and Marc talk about why it’s so important to recognize your biases, stick to your financial plan, and sometimes, do the opposite of what your instincts tell you (with the help of a financial advisor, of course).
Here’s some of what we discuss in this episode:
- How human biases can impact investing decisions
- Having a plan and sticking to it during periods of market volatility
- The benefits of buying low and selling high during market drops
- How FOMO (fear of missing out) can lead to poor financial choices
- Not letting financial news dictate your decisions + focusing on consistent strategies
Resources for this episode:
George Costanza – Do The Opposite
https://youtu.be/CizwH_T7pjg?si=qEzNf3nJzj0CvK6R
Market Watch Article
Cognitive Bias
https://www.sog.unc.edu/sites/www.sog.unc.edu/files/course_materials/Cognitive%20Biases%20Codex.pdf
Get in touch with Don and learn more: https://doncashpodcast.com/
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