Behavioral Finance

 

Investors are not always rational, often have trouble controlling their reactions, and are influenced by their own biases. One of the basic principles of investing is to buy low and sell high. Many investors do just the opposite, they buy when everybody is jumping into the stock market and stock prices are high and then sell when the market corrects and prices are low. At SFA, an important part of what we do is educate clients and help them adopt realistic expectations so as to avoid irrational behavior that may cost them dearly.