Lessons from Freud for smart investing


Jeff Brown in NewJersey.com provides three tips he says are derived from Freud’s psychoanalysis that investors can use to overcome their in-built psychological flaws: 

  • By knowing they are there. And by stoking their egos another way. 
  • Feel superior by playing the odds rationally: Put the same amount of new money into your investments every month. Divide it according to a standard asset allocation model for someone your age, such as 60 percent stocks, 30 percent bonds and 10 percent cash.
  • Emphasize a set of low-fee, tax-friendly index-style mutual funds that try to match the market rather than beat it. 
  • And stick with the program for the long haul.”
    Read the entire article at NorthJersey.com 

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