Over the last 20 years studies show that the average investor greatly under performances the stock and bond markets. Why do investors underperform virtually every capital market?
In this week's episode, I speak with Weston J. Wellington a Vice President with Dimensional Fund Advisors about how you can make smarter investment decisions and possibly improve your investment success. Mr. Wellington is an expert in behavioral finance and investing with over 35 years of experience in the investment industry.
We discuss:
- How the daily diet of investment news can hurt your investing success
- Why it's nature to want to know what will happen next in the investment markets
- The affect our ingrained "fight or flight" response has on our investment decisions during stressful market periods
- Why your behavior as an investor can be the biggest determinate of your investment returns
- Why this time is not "different"
- Like living a healthy lifestyle, investing is not complicated it is just hard to do consistently
- Why using a competent Financial Advisor can help you make smarter investment decisions
- How an investor can increase their chance of having a successful investment experience
- Why you should ignore most market information and news driven investment predictions
Resources Discussed