Investment Research

Majority of Investors Drive their Portfolios without a Diversification Seatbelt

By Andrew Stotz | April 8, 2015 |

It’s a choice that’s nearly a matter of financial life or death. Deciding the right number of stocks to hold in your portfolio is a balance between risk and return – too few and your risk is high, too many and you might as well own a broad market fund or ETF. Research shows that the average active investor owns only two! That’s far too low.

Trading is Still Hazardous to Your Wealth

By Alexander Wetterling | April 6, 2015 |

So you think you are an above-average investor? Svenson (1981) asked Americans and Swedes whether they were above-average drivers. His findings were that more than 90% of Americans and about 70% of Swedes thought of themselves to be more skillful drivers than the average. The impossibility of these perceptions demonstrates the existence of overconfidence bias among humans.