As human beings, we are influenced by all our past experiences. That means that our past experiences affect our current investments and other decisions.

If your earliest investment experiences were during the 1970s — when interest rates were approaching 20% — you will forever think about investments differently than if your earliest investment experiences were during the dot.com bubble. This is why the research of behavioral economists like Nobelist Richard Thaler is so important for investors.

I am posting this great video by the guys at Ritholtz Wealth Management on how your early experiences as an investor affect your lifetime investing behavior. They do a very nice job of discussing this topic.

 

Well done Gentlemen! I don’t want to date myself by disclosing my formative investment experiences but I will say that I often refer to Long Term Capital Management.

 

You can find much more on the informative websites these guys have: https://thereformedbroker.com/

https://theirrelevantinvestor.com/

I Remember When

Here are some of my posts about behavioral finance:

http://secdefenseattorney.com/blog/2018/10/24/smartphone-bad-investment-decisions/

http://secdefenseattorney.com/blog/2018/08/24/our-brains-cause-us-to-make-bad-investment-decisions/

http://secdefenseattorney.com/blog/2017/10/15/economics-101-not-always-right/

http://secdefenseattorney.com/blog/2017/12/15/how-real-human-beings-make-decisions/

http://secdefenseattorney.com/blog/2017/10/09/behavioral-economics-improving-practices-at-the-irs/

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Lisa Bragança recovers losses for investors all over the country, protects whistleblowers, and defends individuals and businesses in government investigations. As a Branch Chief with the SEC Division of Enforcement, Lisa conducted and supervised insider trading investigations and a wide range of investment fraud and Wall Street misconduct. Lisa has a BA in Economics from the University of Chicago and a JD/MBA from the University of Chicago.

You can reach Lisa at (847) 906-3460 or Lisa@SECDefenseAttorney.com. www.SECDefenseAttorney.com

http://secdefenseattorney.com/about-lisa-braganca/

Disclaimer: This information is for general purposes only and should not be interpreted to indicate a certain result will occur in your specific legal situation. The information on this website is not legal advice and does not create an attorney-client relationship.