What are ETFs?

They are Exchange Traded Funds.  Huh? Simply, an ETF is an investment fund that is traded on a stock exchange. Although the ETF is similar to a mutual fund (or unit trust) and comprised of many individual investments such as stocks, bonds, or both,…

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Indecision Bias

A not all too famous person once said, “I used to be indecisive.  Now I am not sure.” — me in the not too distant past. Choice is hard.  When faced with more than 2 additional options to choose from, we often get discombobulated…

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Decision Heuristics

Or why we adhere so strongly to our beliefs.   One culprit is what the rule of consistency describes: a powerful force that compels us to act in a way that is consistent with our past behavior (this rule is extensively…

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Bigness Bias

Have you also observed that many people behave as if not all dollars are created equal?  By assigning relative values to different moneys that in reality have the same buying power, they run the risk of being too quick to spend,…

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STATUS QUO BIAS

Irrationally wanting things to stay the same, also called inertia.  We do this in part because we want to avoid costs, even when they’re offset by a larger gain, a process psychologists call “Loss aversion”. You hold onto a mutual fund…

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