'Course a reading/thinking environment may not always be what we want; but.....
I'm seldom in a quiet environment while reading here or articles or researching this or that. At an older age this is supposed to be good for one's brain, ya know; to help continue the multi-tasking or related.
About half of the time I have headphones in place and listening to music. Have to be careful with this and pay attention, as what the music is may indicate the "mood", which may influence investing decisions. The music tonight is mostly 60's and 70's progressive rock, with a 10 minute symphonic piece thrown into the mix........."Bolero". But, this is not important tonight; as I am only reading this or that and looking at foreign market pricing. No decision making tonight.
I don't listen to music during buys or sells processing.
Have a good remainder of the day, for those elsewhere on this planet.
Catch
Comments
No preferred environment for MFO. Carry the iPad almost everywhere, so always enjoy logging in. Great way to kill time in airports.
Not at the beach, however, because don't want to subject the iPad to abuse.
Use an old first generation Kindle for beach reading.
I likely am the least qualified member of the MFO Board to respond to your question, but it is a stimulating subject. I trade very infrequently, do not commit much time to the various financial media, and do not even currently know the value of my portfolio. A Black Swan event does attract more of my attention.
A few academic studies have explored the impact of environmental factors on investor behavior. Most of these studies have observed some influence; typical of a controversial topic, a few others have failed to discover any impact whatsoever. I have not been impressed with the methods deployed or the interpretations made. This may well be instances of the researchers finding what they set out to find. Who knows without a painstakingly careful and time consuming examination?
Those who find a measurable influence on investor performance conclude that mood changes are the likely cause for portfolio activity that is mostly induced by weather conditions. The behavioral gurus are winning the day with their discoveries (and assertions) that mood swings, emotions, and general feelings are significant components in the investment decision making process.
Just look at the success that the Fuller and Thaler institutional fund management team has enjoyed using their behavioral-based market strategy system. They have generated significant Alpha for their multi-million dollar clients.
Although the industry research has been in existence for only about two decades, the environmental impact advocates suggest that the number of cloudy days, high humidity, both extremely high and low temperatures, and the reduction in daylight hours negatively squeeze investment returns. Apparently, a researcher named Saunders pioneered this work in 1993.
In my own case, I assemble a body of statistical data, read some reports and articles, and consult a number of folks I consider knowledgeable prior to making my investment decisions. I only believe in the wisdom of crowds when their opinions are truly independent, and are offered by people who have some subject matter knowledge and have skin in the game.
Only after my information collection period is complete do I make a final investment judgment. I do that in complete silence and isolation. My decisions are never monumental by design; I am an incrementalist by nature. I am never absolutely sure that any decision I make is correct so I always have a near-cash safety net. I’m frequently wrong, but the pain is always manageable.
I hope this is helpful.
Your request raises a much broader question that I have never considered. If the environment is a key player in the investment decision process, are there National data that document a regional disparity in investment performance? Do folks in San Diego perform better than those in Chicago? The same question could be asked of mutual fund managers located throughout the USA.
Best Wishes.