I’ve posted Entry #58 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Behavioral Finance 2.0.
Juicy Excerpt: It’s the humans that cause all the trouble.
Take them out of the equation and becoming an effective investor would be an easy matter indeed. Buy-and-Hold would work! If it weren’t for those darn humans and their annoying emotions, stocks really would always be best for the long run and timing really wouldn’t be necessary and it really would be a difficult business trying to beat the market. If we could only get rid of the humans, how simple life could be.
We cannot get rid of the humans. We’re stuck with them. Like it or not, we’re just going to have to get about the business of trying to figure them out.