Advisors and the Behavioral Finance Dilemma
People make financial decisions based on emotion and biases. I am sure you are not surprised to hear that. As a matter of fact, you probably experience it every day. As an example, you are working with a client regarding his investment portfolio and, due to something he heard on the news or through a colleague, he is ready to jump ship on an investment that you recommended. Or you suggest that a client increase her allocation of equities to combat long-term inflation, but due to a Google search on“inflation,” she argues that inflation has been around 2 percent for several years. These are examples of how behavioral finance plays out in our field.
Copeland, C.W., "Advisors and the Behavioral Finance Dilemma" (2014). Faculty Publications. 44.