Investing Psychology Chapter 6: How to Fix Your Brain (Part 1)
We’ve spent the last five chapters talking about how biased we are. Now it’s time for the “how-to” part. How do we actually fix these mental glitches?
Diversification
Why Bonds Belong in Your Portfolio: Strategic Asset Allocation Explained
Chapter 2 asks a question every investor should care about. Why put money in bonds at all? Stocks get more attention, they’re flashier, and over long periods they tend to return more. So what’s the case for fixed income?
Modern Portfolio Theory: Your New Best Friend
Chapter 8 opens Part Three of the book, titled “The New Investment Technology.” We’re leaving behind the debate over whether analysts can predict stock prices. Now we’re entering the world of academic theories that actually changed how professionals invest.