When we are facing unknown situations our brains will try to find similar situations and then use it to make decisions. This is called representativeness bias. It can be especially dangerous because we may miss some critically different situations that render the past situation useless for decision making. This applies
The economic data continues to show signs of improvement while the number of Coronavirus cases and now the daily death numbers begin to rise again. This has led to some states to slow or even reverse their re-opening plans. Scientists are learning more and more about the virus, yet it
In just three months the stock market switched from panic mode to full-fledged euphoria. For most of the quarter stocks have been going up 4, 5, or 6 days in a row, only to have a sudden large drop with little warning or explanation. Many investors
I've been managing money for over 25 years. With advisors and clients across the country and now the ability to hold client meetings online I can usually get a pretty good feeling for investor sentiment. I used the word "animal spirits" to describe investor sentiment two weeks ago. Euphoric and
The May jobs report shocked pretty much everybody (in a good way). Without going into all the details about how the numbers are estimated, which makes the May report questionable, let's just say it is encouraging to see more people going back to work faster than economists expected. Whatever the
