Welcome to the latest installment in our series on behavioral finance or investor psychology. In today’s video, Senior Private Wealth Advisor, Paul Blatz will be discussing confirmation bias, a concept that applies to all aspects of our lives and can significantly impact our investment decisions. Confirmation bias is the tendency to form an opinion about an investment and then actively seek out information that supports and validates that opinion. This means we often ignore dissenting or negative opinions that could provide valuable insights. As human beings, it can be challenging to separate ourselves from the desire to be right and to acknowledge the potential risks and cons associated with our investment choices. However, it is crucial to be more objective and balanced in our outlook, taking into account both the positives and negatives. By doing so, we can make more informed and sound investment decisions. Stay tuned for more videos in this series as we explore these essential aspects of behavioral finance.
Watch our Behavioral Finance Explained Series here.
