Behavioral finance, or the psychology of investing, explains how and why people make money decisions. John R. Nofsinger, professor of finance at the University of Alaska and author of The Psychology of Investing, describes the biases that can cause investment failure and gives tips on how to avoid making investment mistakes. Why does emotion play a role in financial decision making, and why is it so important to keep track of the bigger picture?< While behavioral finance dictates how individuals make investment decisions, can it also explain market volatility? When examining the history of the markets, it’s interesting to look at the effects of major historical events, such as the world wars, on stock performance. Did investors gain or lose? If you are wondering how the upcoming American presidential elections will affect your investments register for an elections webinar at: www.profile-financial.com/webinar. Follow John Nofsinger at: http://www.financeesp.biz
