Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
The Illusion of Control in Personal Finance
We explore how the illusion of control leads investors to overtrade and misprice risk. Using data from Barber and Odean on individual investor behavior, we examine why frequent trading often destroys returns rather than enhancing them. Lucas and Luna break down the psychology behind active management versus passive index investing, offering a clear look at how confidence can mask incompetence in your portfolio.
#BehavioralEconomics #IllusionOfControl #PersonalFinance #InvestingPsychology #OverconfidenceBias #ActiveVsPassive #TradingBehavior #BarberAndOdean #MarketEfficiency…
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