May 2021
Intermediate to advanced
320 pages
7h 13m
English
In the final section of the book, we will cover implementation of your portfolio from a behavioral finance perspective. We will first cover behavioral aspects of the active/passive debate in Chapter 30, which includes the potential benefits of active management and how to create the Best Practical Allocation for your portfolio. Chapter 31 covers behaviorally aware portfolio construction: We discuss the benefits of mental accounting, the goals-based approach to asset allocation, and my firm's portfolio approach. In Chapter 32 the topic is behavioral finance and market corrections. We review why investors panic and explain what happens from a behavioral finance perspective.
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