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Mind on My Money

How to invest wisely

Cognitive Dissonance
My Mutual Fund Manager Is an Idiot

John Nofsinger Ph.D. on January 8, 2015

How you feel about a losing investment depends on who you can blame. Regret is strong when there is no one to blame but yourself. Cognitive dissonance plays a role too. Whether you need to avoid regret then drives what you do with the investment: buy, sell, or hold.

How you feel about a losing investment depends on who you can blame. Regret is strong when there is no one to blame but yourself. Cognitive dissonance plays a role too. Whether you need to avoid regret then drives what you do with the investment: buy, sell, or hold.

Bias
Is a Company Name Important to Investors?

John Nofsinger Ph.D. on December 30, 2014

A rose by any other name is not so sweet to investors. Investors like fluency in the name of their stocks and mutual funds. Fluently named stocks are valued higher and have broader ownership.

A rose by any other name is not so sweet to investors. Investors like fluency in the name of their stocks and mutual funds. Fluently named stocks are valued higher and have broader ownership.

Genetics
Bad Investment Decisions?

John Nofsinger Ph.D. on December 5, 2014

What is the major source of your investment mistakes; socioeconomic characteristics, genetics, environment, or personal experience?

What is the major source of your investment mistakes; socioeconomic characteristics, genetics, environment, or personal experience?

Anxiety
The Psychology of Ebola Panic

John Nofsinger Ph.D. on October 4, 2014

The chances of catching and dying of Ebola in the U.S. are minuscule. Far less than dying from lightning or a ladder. Yet some people are feeling anxious and a few may even panic over Ebola. I describe why Ebola seems scarier than your bath tub.

The chances of catching and dying of Ebola in the U.S. are minuscule. Far less than dying from lightning or a ladder. Yet some people are feeling anxious and a few may even panic over Ebola. I describe why Ebola seems scarier than your bath tub.

Aging
We are Retiring in Droves

John Nofsinger Ph.D. on September 3, 2014

10,000 baby boomers are retiring per day. The social insurance programs already have a deficit. Can the bond markets absorb the trillions of dollars of new debt to fund these programs over the next two decades and beyond? How will it impact interest rates and our economy?

10,000 baby boomers are retiring per day. The social insurance programs already have a deficit. Can the bond markets absorb the trillions of dollars of new debt to fund these programs over the next two decades and beyond? How will it impact interest rates and our economy?

Optimism
Signal of Stock Market Apocalypse?

John Nofsinger Ph.D. on July 17, 2014

Is Rupert Murdoch’s bid of $80 billion to buy Time Warner a signal of the fourth horseman in a stock market apocalypse?

Is Rupert Murdoch’s bid of $80 billion to buy Time Warner a signal of the fourth horseman in a stock market apocalypse?

Soccer Stock Market Sentiment
Depression
US Soccer Sentiment Not Quite There (in the Stock Market)

John Nofsinger Ph.D. on July 4, 2014

Soccer sentiment in many countries is so strong it impacts their stock market. Get eliminated from the World Cup, see a decline in the stock market the next day. Has US soccer sentiment risen to that level?

Soccer sentiment in many countries is so strong it impacts their stock market. Get eliminated from the World Cup, see a decline in the stock market the next day. Has US soccer sentiment risen to that level?

Attention
What Type of Investor Are You?

John Nofsinger Ph.D. on July 3, 2014

Your investor type describes the behavioral sources of your errors, your investment characteristics, and ultimately your overall success.

Your investor type describes the behavioral sources of your errors, your investment characteristics, and ultimately your overall success.

Anger
Taxes – What We Want

John Nofsinger Ph.D. on November 28, 2010

 Meir tells fascinating tales of the trials and tribulations that people do in order to avoid or even evade paying taxes...including planning the timing of their own death!

 Meir tells fascinating tales of the trials and tribulations that people do in order to avoid or even evade paying taxes...including planning the timing of their own death!

Behavioral Economics
The Treasury Bubble

John Nofsinger Ph.D. on July 3, 2009

After witnessing the tech stock bubble and the real estate bubble, what is next? It is the US Treasury security market bubble. When will it burst and skyrocket interest rates?

After witnessing the tech stock bubble and the real estate bubble, what is next? It is the US Treasury security market bubble. When will it burst and skyrocket interest rates?

Behavioral Economics
Inflation or Deflation?

John Nofsinger Ph.D. on June 11, 2009

 The news is full of economists concerned about either upcoming inflation or the current deflation. So which is right?

 The news is full of economists concerned about either upcoming inflation or the current deflation. So which is right?

Anxiety
Tax the Rich

John Nofsinger Ph.D. on May 24, 2009

Can the rich really pay for all this government spending. Numbers from the IRS and Congressional Budget Office explore the possibility.

Can the rich really pay for all this government spending. Numbers from the IRS and Congressional Budget Office explore the possibility.

Behavioral Economics
Psychology and Taxes on Capital

John Nofsinger Ph.D. on March 5, 2009

 President Obama's proposed budget includes an increase in taxes on capital. That won't be very useful in generating tax revenue in the short-run. But it will also make fixing the broken economy even harder.

 President Obama's proposed budget includes an increase in taxes on capital. That won't be very useful in generating tax revenue in the short-run. But it will also make fixing the broken economy even harder.