Stock Drunk --
Behavioral Finance Insights
Stocks are a wonderful investment class. There’s a good chance that stocks are going to ruin your hopes of winning financial freedom early in life.
Both things are so.
This section of the site offers articles that explore how the craziness of this high-potential/high-risk investing class causes us to behave in ways that are the opposite of what any clear-thinking person would describe as “rational.” The articles put forward here explore the phenomenon of how wild bulls cause many of us to become so emotionally invested in stocks as to become “stock drunk.”
How Did Common-Sense Investing Become Controversial?
Behavioral Finance Article #1 -- How millions who see the appeal of common-sense investing became “stock drunk.”
The Case for Selling in a Stock Market Downturn
Behavioral Finance Article #2 -- In a long stock market downturn, those who panic first panic least.
The Coming Revolution in Stock Market Investing Advice
Behavioral Finance Article #3 -- The stock market investing advice of today is rooted in the "Stocks for the Long Run" Investing Paradigm, which rose to dominance during the greatest bull market in U.S. stock-market history. A more realistic investing paradigm is needed, one rooted in what the historical stock-return data really says about how to invest successfully for the long term.
Stock Panic Up Close and Personal
Behavioral Finance Article #4 -- We see stock panic playing out in real time in comments made on investing discussion boards in recent years.
The Future of Behavioral Finance
Behavioral Finance Article #5 -- Let’s start telling the truth about stock investing. Yes, it’s a crazy idea. But, hey! -- it just might work!
Why Stocks Crashed
Behavioral Finance Article #6 -- The Great Karmac tells why it happened before it happens!
Looking Forward to the Coming Stock Price Crash
Behavioral Finance Article #7 -- How I learned to stop worrying and look forward to what I used to fear.
My Beef with Bull Markets
Behavioral Finance Article #8 -- I feel about bull markets about the way that Linda Ronstadt feels about that guy who toyed with her affections -- they’re no darn good and I don’t mind telling you the 20 reasons why.
Why Is Today's Investing Advice So Poor?
Behavioral Finance Article #9 -- Today’s investing advice was not developed with the needs of the middle-class worker trying to fund his or her retirement in mind.
Investor Emotions Correlated with Stock Valuations
Behavioral Finance Article #10 -- A listing of the investor emotions that apply at various stock-valuation levels.
If the Random Walk Is Real, the Efficient Market Isn't
Behavioral Finance Article #11 -- Both concepts cannot apply, at least not at the same time. They contradict each other.
The Efficient Market Concept Is a Big Bunch of Hooey
Behavioral Finance Article #12 -- I know that the Efficient Market Theory has been selected as the official stock investing theory of the 2008 Olympics. Still, I say that this Easter Bunny of an investing theory won't hop.
Who's Afraid of the Efficient Market Hypothesis?
Behavioral Finance Article #13 -- I take issue with Shiller’s claim that we need to take the efficient market hypothesis “seriously.”
Woody Allan's Take on the Efficient Market Theory
Behavioral Finance Article #14 -- You don't have to stop believing in the Efficient Market Theory just because you know it's not true.
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