The Unconscious Nudge: Behavioral science and its financial implications
Behavioral science and its financial implications
Have you ever thought of a time where there was just a lot of information coming at you? Have you ever thought that maybe not all of the information that was being presented to you was being consumed by your brain? The reality is that your brain acts like a filter. It disregards information that it deems to be unnecessary, and it accepts information it deems to be important. In a way, your brain is acting like a filter, and that filter nudges us to make certain decisions.
Direct Indexing and the IKEA Effect
The “IKEA effect” describes a cognitive bias that happens when people put in some form of labor to complete a project or finish a creation. Direct indexing won’t solve the behavior gap, but it has the potential to create better investor behaviors by allowing investors to play a larger role in the portfolio-building process.
Market Perspective: There are No Rewards Without Risk
2022 reminded investors of the risk from investing, but none of this makes losses palatable. As the old axiom goes, “there are no rewards without risk.” Here's perspective from Marta Norton, CIO, Americas, Morningstar Investment Management LLC.
Growth Investing Requires a Growth Mindset
In this video with Institutional Investor, William Blair’s Ken McAtamney discusses how growth investors are always looking toward the future, utilizing a curious mindset and disciplined research process to discover the next potential industry innovators.