Research & Insights

Beating Behavioral Biases With Smart Portfolio Structure

Abstract:

The theory of behavioral finance states that investors bring psychological and behavioral biases to their financial decisions that create disparities between the fair value of financial assets and their actual prices. With a disciplined portfolio structure as a blueprint and an informed, objective financial advisor as a partner, it’s possible for investors not only to avoid these biases in their own portfolios, but also to profit from the sometimes irrational actions of their fellow investors.

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