SYDNEY 02 9233 2433

MELBOURNE 03 9601 6800

EMAIL jps@jpalmer.com.au

Privacy Policy · Disclaimer · FSG
F Palmer & ME Palmer
Trading as Joseph Palmer & Sons
AFS Licence 247067 · ABN 29 548 490 818

Palmer Blog

No articles found with the specified search parameters. Return

The Dangers of the Anchoring Effect

9 Jul 2019

‘Anchoring’ can be most detrimental to the best interests of investors; it is, in fact, something we all have a tendency to do, and which we should almost always try to avoid. It is the tendency to evaluate buying and selling decisions around a specific number which emotionally latches itself into our minds based on dangerous misconceptions.

The Disposition Effect

19 Nov 2018

The ‘disposition effect’ has been described as ‘One of the most robust facts about the trading of individual investors’ (Barberis & Xiong).  Professor Hersh Shefrin (Santa Clara University, USA) describes the effect as ‘a predisposition toward get-evenitis’.


The Gambler’s Fallacy

20 Jul 2018

In Fyodor Dostoevsky’s classic novella, The Gambler, central character Alexei Ivanovich at one point studies a roulette wheel and observes the frequency in which the ball lands in a red or black slot.

Confirmation Bias

1 Jun 2018

Academic studies conclude that investors are far from uniformly ‘homo economicus’. Investment behaviour is influenced by compelling factors other than rationality. The example below supports the view that much investment behaviour is emotional.

The Choice Paradox

13 May 2018

Academic studies conclude that investors are far from uniformly ‘homo economicus’. Investment behaviour is influenced by compelling factors other than rationality. The example below identifies that investment behaviour should recognise emotion as well as arithmetic.

12

Name
Email
Phone
Message