FYI: Ask investors what they want from their investments and they are likely to say that all they want is to make money. But what is the money for? Standard finance rarely answers this question, considering the question and its answer beyond its domain.
But both this question and its answer are key to behavioral finance today. People’s normal wants, even more than their cognitive and emotional shortcuts and errors, underlie answers to important questions of finance, including saving and spending, portfolio construction, asset pricing, and market efficiency.
Regards,
Ted
http://www.marketwatch.com/story/this-little-bit-of-honesty-can-avoid-big-investing-mistakes-2017-04-28/print
