What Is My Behavioral Investor Type?
Step 1: BIT Orientation Quiz
Step 2: Bias Identification Quiz
Step 3: Advice for Each BIT
Summary
25 Preserver Behavioral Investor Type
Upside/Downside Analysis
Bias Analysis of Preservers
Advice for Preservers
26 Follower Behavioral Investor Type
Upside/Downside Analysis
Bias Analysis of Followers
Other Important Follower Biases: Hindsight, Cognitive Dissonance, and Regret
Advice for Followers
27 Independent Behavioral Investor Type
Upside/Downside Analysis
Bias Analysis of Independents
Self-Attribution
Conservatism Bias
Representative Bias
Advice for Independents
28 Accumulator Behavioral Investor Type
Upside/Downside Analysis
Accumulator Bias Analysis
Advice for Accumulators
29 Asset Allocation Case Studies for Each Behavioral Investor Type
13 PART VI: BEHAVIORAL ASPECTS OF PORTFOLIO IMPLEMENTATION 30 Behavioral Finance Aspects of the Active versus Passive Debate The Logic of Passive Management The Potential Benefits of Active Management Advice: Use the Best Practical Allocation for Your Portfolio Notes 31 Behaviorally Aware Portfolio Construction Introduction Goals-Based Investing Consolidating Accounts into a Portfolio View Portfolio Approach 32 Behavioral Finance and Market Corrections The Most Recent Panic Note
14 Index
List of Tables
1 Chapter 11Table 11.1 Portfolio Selection: Which Portfolio Seems Best?
2 Chapter 15Table 15.1 Sample of a Periodic Table of Investment Returns
List of Illustrations
1 Chapter 1Figure 1.1 Investor Returns from the 2019 DALBAR ReportFigure 1.2 The Behavioral Finance GapFigure 1.3 Robert Shiller, Sterling Professor of Economics Yale University a...Figure 1.4 Richard Thaler, PhD, 2017 Recipient of the Nobel Memorial Prize i...Figure 1.5 Meir Statman, PhD, Glenn Klimek Professor of Finance at the Leave...Figure 1.6 Daniel Kahneman, 2002 Nobel Prize Winner in Economic SciencesFigure 1.7 Professor Dan Ariely, James B. Duke Professor of Marketing
2 Chapter 2Figure 2.1 Most Significant Behavioral Biases Affecting Client Investment De...Figure 2.2 Categorization of Twenty Behavioral Biases
3 Chapter 4Figure 4.1 Montier Observes That Analysts Cling to Their Forecasts
4 Chapter 6Figure 6.1 Sample-Size Neglect Diagnostic: Which Sequence of Coin Toss Resul...
5 Chapter 7Figure 7.1 A Sample Distribution of the Descending Outcome Sequence in “The ...
6 Chapter 11Figure 11.1 Which Line Is Longer?Figure 11.2 Which Line Is Longer?
7 Chapter 16Figure 16.1 The Value Function—A Key Tenet of Prospect Theory
8 Chapter 23Figure 23.1 The Dieter-Exerciser versus the Yo-Yo DieterFigure 23.2 Saver-investor versus the Over-Confident TraderFigure 23.3 The Risk-Averse Investor
9 Chapter 24Figure 24.1 BIT Identification and Advice ProcessFigure 24.2 Biases Associated with Each Behavioral Investor Type
10 Chapter 25Figure 25.1 Preserver Investor Type Characteristics
11 Chapter 26Figure 26.1 Follower Investor Type CharacteristicsFigure 26.2 Sample of a Periodic Table of Investment Returns
12 Chapter 27Figure 27.1 Independent Investor Type Characteristics
13 Chapter 28Figure 28.1 Accumulator Investor Type Characteristics
14 Chapter 30Figure 30.1 Percentage of Domestic Equity Underperforming the S&P 1500...Figure 30.2 Outperformance of Active Funds vs. Interest Rates
15 Chapter 31Figure 31.1 Behavioral Finance or Goals-Based Approach to Asset AllocationFigure 31.2 Sunpointe Asset Allocation Framework
16 Chapter 32Figure 32.1 Market CorrectionsFigure 32.2 Market Recoveries from Epidemic EpisodesFigure 32.3 Market Recoveries since 1946
Guide
1 Cover
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