Tripped Up by the ‘Money Illusion’
Overcoming the money illusion trap can help your clients make informed decisions by understanding the difference between nominal and real dollars, prices and yields.
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Additional Insights
The Psychology of “Big” Life Decisions
By Hal Hershfield, Ph.D.
Perspectives /2024 Market Forecasters’ Report Card
Did You Know? /Life Well-Being as a Portfolio
By Meir Statman, Ph.D.
Perspectives /What Today’s Valuations Are Telling Investors
Did You Know? /Understanding Hyperopia: The Hidden Regret of Over-Saving
By Hal Hershfield, Ph.D.
Perspectives /It’s Going Down: An Update on Interest Rates
Did You Know? /Filial Loyalty: What Adult Children Do for Their Elderly Parents
By Meir Statman, Ph.D.
Perspectives /Not So Fast! Lessons From a Short-Term Panic Event
Did You Know? /Beyond the Lemonade Stand: Cultivating Financially Savvy Kids
By Hal Hershfield, Ph.D.
Perspectives /Think Big Picture When It Comes to Elections
Did You Know? /Has Passive Investing Gotten Too Big?
Did You Know? /How Self-Efficacy Shapes Financial Outcomes
By Camelia Kuhnen, Ph.D.
Perspectives /Going Back to T+1
Did You Know? /Understanding the Three Dimensions of Life Well-Being and How Income Affects Them
By Meir Statman, Ph.D.
Perspectives /Deciphering the Prolonged Yield Curve Inversion
Did You Know? /Unlocking Life Well-Being: Insights from the Third Generation of Behavioral Finance
By Meir Statman, Ph.D.
Perspectives /Currency Effects on Non-U.S. Stock Returns
Did You Know? /Confirmation, Availability and Additivity: Biases That Can Impact Us All
By Hal Hershfield, Ph.D.
Perspectives /Stuck at Home: Mortgage Rates and the Endowment Effect
By Hal Hershfield, Ph.D.
Perspectives /Reflecting on Four Years Since the Pre-COVID Market Peak
Did You Know? /What Interest Rate Cuts May Mean for Bond Returns
Did You Know? /Diversification vs. Concentration in the Era of the ‘Magnificent Seven’
By Meir Statman, Ph.D.
Perspectives /The Stories of 2023
Did You Know? /Why Do We Mispredict the Future?
By Hal Hershfield, Ph.D.
Perspectives /Taking a Holistic View of Your Investment Journey
Did You Know? /The Pitfalls (and Benefits) of Overconfidence
By Meir Statman, Ph.D.
Perspectives /The Certain Uncertainty of Short-Run Economic Predictions
Did You Know? /Can Financial Mindfulness Help Enhance Outcomes with Money?
By Hal Hershfield, Ph.D.
Perspectives /Index Concentration: Have Some Indexes Become Too Top-Heavy?
Did You Know? /The Unheralded Contributions of Markowitz to Behavioral Portfolio Theory
By Meir Statman, Ph.D.
Perspectives /Fixed Index Annuities: A Compelling Tool to Help Improve Asset Allocations
By Eduardo Repetto, Ph.D.
Perspectives /Focus on the Horizon: Tuning Out the Noise with Valuations and Returns
Did You Know? /It’s Personal: Can Personalization Improve Nudges on Financial Decisions?
By Suzanne B. Shu, Ph.D.
Perspectives /Disentangling Loss, Risk and Regret Aversion in Financial Decision-making
By Meir Statman, Ph.D.
Perspectives /The FOMO Worth Your Attention
Did You Know? /Then and Now: An Update on Today’s Bond Market
Did You Know? /
Is It Just Me, or Are Things Getting Worse?
By Hal Hershfield, Ph.D.
Perspectives /3 Storylines Behind the Market in 2023
Did You Know? /Tripped Up by the ‘Money Illusion’
By Meir Statman, Ph.D.
Perspectives /Delivering Value-Added Real Estate Solutions
By Daniel Ong, CFA
Perspectives /The Herd Mentality That Drives Bank Runs
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Perspectives /What You Might Not Know About Asset Class Returns
Did You Know? /Putting a Bow on 2022
Did You Know? /Understanding Emotions During Volatile Markets
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Perspectives /Investing Through Tough Times in Four Charts
Did You Know? /The Great Real Estate Debate: Public vs. Private
Did You Know? /Capturing Time
By Hal Hershfield, Ph.D.
Perspectives /The Current State of SPACs
Did You Know? /Market Nosedives and Consumer Missteps
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Perspectives /Trading Places: The Blip on the Radar That Can Cost Index Fund Investors
Did You Know? /Parents’ Lessons in Saving and Spending
By Meir Statman, Ph.D.
Perspectives /Volatility Lessons: Should We Expect More Market Declines?
Did You Know? /Does Spending Imply Wealth?
By Hal Hershfield, Ph.D.
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Why Yesterday's Rising Rates Don't Guarantee Poor Bond Returns Today
Did You Know? /New Lessons for Predicting Future Expenses
By Hal Hershfield, Ph.D.
Perspectives /Timing Is Everything (if It Works)
Did You Know? /Why Market Corrections Shouldn’t Faze Long-Term Investors
Did You Know? /Why Dollar Cost-Averaging Can Be a Wise Strategy for Regret-Averse Investors (and We’re All Regret-Averse)
By Meir Statman, Ph.D.
Perspectives /Does Having More Money Equate to More Happiness?
By Hal Hershfield, Ph.D.
Perspectives /The Same, but Different: An Update on Stock Valuations
Did You Know? /Helping Clients Deploy the Mental Tools of Wealth Accumulation in Their Decumulation Years
By Meir Statman, Ph.D.
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Tax Talk
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The Sum and the Parts
By Phil McInnis
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The Psychology of Decumulation
By Suzanne B. Shu, Ph.D.
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The Next Chapter: Short-Term Thinking and Long-Term Planning
By Hal Hershfield, Ph.D.
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Our Scientific Approach to Investing
By Phil McInnis
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The Fixed Income Marketplace: Rates, Carry and Roll
By Hozef Arif
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Trading Isn’t the Same Thing as Investing: The Lessons of GameStop
By Meir Statman, Ph.D.
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New Year... New Me?
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Staying the Course – Lessons from 2020
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Demystifying Cryptocurrencies: A Primer
By Andrew Karolyi
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The Confirmation Bias
By Hal Hershfield, Ph.D.
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When Do Municipal Bonds Make Sense in a Fixed-Income Allocation?
By Hozef Arif
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The Sum of Its Parts
Did You Know? /
Understanding Risk, Returns and Rebalancing
By Sunil Wahal, Ph.D.
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What's Up with Interest Rates?
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Will the U.S. Election Affect Stock Market Returns?
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Dollar for Dollar? Currency Movements, Stock Returns and Diversification
By Mitchell Firestein
Did You Know? /
How Availability Bias and FOMO Can Impact Financial Decision-Making
By Hal Hershfield, Ph.D.
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Well-Being in the Time of COVID-19, a Conversation with Professor Meir Statman, Ph.D.
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Representativeness in Investing
By Meir Statman, Ph.D.
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Predicting Our Expenses
By Hal Hershfield, Ph.D.
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Can Growth Stocks Get Growthier? An Update on Valuations
By Ted Randall
Did You Know? /
A Penny Saved Is a Dollar Earned: The Advantages of Low-Cost, Modern Investment Solutions
By Adam Scheve, CFA, CPA
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Managing Great (Inflationary) Expectations
By Andrew Karolyi
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Investment Risk, Investor Risk Tolerance and Goals-Based Portfolios
By Meir Statman, Ph.D.
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On The Importance of Goodwill
By Sunil Wahal, Ph.D.
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Could 'Flying to Safety' Be Dangerous?
By Eduardo Repetto, Ph.D.
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How Much Value Does an ETF Add to My Taxable Account?
By Vadim Gorin
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Weathering the Storm: Historical Lessons for Investors Pursuing Higher Expected Returns
By Eduardo Repetto, Ph.D.
Perspectives /Fear Is Normal, but Don’t Panic
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Good Hindsight Shortcuts Can Help Avoid Costly Hindsight Errors
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Coronaviruses, Pandemics and the World Economy
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The Illusion of Wealth
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Good Framing Shortcuts Can Help Avoid Costly Framing Errors
By Meir Statman, Ph.D.
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Competition in Investment Products
By Sunil Wahal, Ph.D.
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Empathizing with Your Future Self May Help Long-Term Financial Decision-making
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Perspectives /Does Investing in Emerging Markets Still Make Sense?
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ETFs – An Important Tool for Wealth Management
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Perspectives /Investment Errors Are Costly
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