Author: Carl Goodin

Investor Behavior and a Bit About Inflation

by  on  in Investing

Economists and psychologists have conducted studies to determine whether investors always act rationally. They don’t. A number of persistent patterns of irrational investor behavior have been identified, including overconfidence, hindsight bias, short-term focus, regret, mental accounting and the hot-hand fallacy. We all tend to make these mental mistakes but can avoid them once we become aware. With this writing we… Read more →

Help, I’m scared!

by  on  in Investing

Ca-Can’t you understand what’s happening here? Don’t you see what’s happening? Potter isn’t selling. Potter’s buying. And why? Because we’re panicky and he’s not. That’s why. He’s picking up some bargains. —- George Bailey, circa 1930 In 2022 some investors are feeling the same way customers of the Bailey Building and Loan felt in 1930, fearing that their assets will… Read more →

Welcome, 2022.

by  on  in Financial Planning, Investing

365.256. According to Wikipedia 365.256 is the number of Earth rotations it takes for our planet to fly around the nearest star and return more or less to the original spot. Since we humans have learned this, we’ve been keeping track of our trips. We are now in the earliest part of the one we call 2022. It’s convenient and… Read more →

Risk Tolerance, Inflation, DARPA & AI.

by  on  in Financial Planning, Retirement, TechKnowledgey

What is your risk tolerance? During the financial planning process we ask questions about – well, everything that might possibly be useful in understanding our clients as they consider their priorities, concerns, strengths, limitations, etc., etc. Specifically with regard to developing and maintaining a proper investment policy it is useful to assess our client’s risk tolerance. A relatively new idea… Read more →