THOUGHTS ON MONEY [T.O.M.] is a place to find simple truths on money. Everything from budgeting to investing to decision making. A great place to come for answers to your own personal financial questions or to spark thought on how to improve your financial life. Enjoy an easy to read, application focused commentary.
One of the most commonly referenced cognitive biases in behavioral finance is recency bias. This bias is our tendency as investors to lean more heavily on recent outcomes to guide future expectations. BUT past is NOT prologue, and herein lies the exact issue that we will address in today’s discussion: investor’s great [misplaced] expectations around future investment returns.
Stocks and bonds behave differently, and their uniqueness allows you to assess which puzzle piece – stocks or real estate – will fit best for the hole you are trying to fill in your portfolio.
Trevor is a Partner and Director of our Private Wealth Advisor Group.
As the author of TOM [Thoughts On Money], Trevor endeavors to write and speak about financial concepts and principles in a kind of “straight” talk demeanor and posture.
He received his Bachelor’s degree in Organizational Leadership from Biola University and his MBA from California State University, Fullerton.