The metaphor of financial markets as ecological systems will also be explored. The conventional wisdom about investment risk taking is that it is a function of the age, wealth, income requirements, and horizon of the investor, and that investment managers need only to determine the appropriate level of risk for the client and match the portfolio to it. An examination of the differences between behavioral finance and standard finance. Why research suggests standard finance is based on erroneous assumptions and fails to capture the basic facts about financial markets. What the most serious deficiencies are in the standard view of financial markets and practices.
Research shows it has to do with shortsighted fear of losing money.
Why more frequent reports make things worse and contribute to anxiety about losses. On the Practice of Investment Decision Making. The R.J. Herrnstein Lecture Featuring noted experts from the financial, academic and research communities. Day Two 6. Each tendency has specifiable characteristics that allow it to be identified and each has given birth to a corresponding behavioral economic strategy for investing.