INVESTMENT STRATEGY
INVESTMENT BIAS
SPONSORED CONTENT
Why Buying Into Access and Noise Can Lead to Poor Investments LISTENING TO HYPE IN THE PRESS AND SOCIAL MEDIA ISN’T THE BEST WAY TO MAKE INVESTMENT CHOICES.
by Kyle Jones
AVAILABILITYBIAS Availability bias says investors will make investments that are easy and convenient. They’ll invest in what clamors for their attention most. In the world of investing, it has never been easier to invest in stocks and crypto. With free trading platforms like Robinhood for stocks and coinbase, crypto.com, and FTX for crypto, even novice investors can get set up and be
f you’ve ever vacationed over- seas, you know that the most
noise on social media typically are not the best options for your portfolio. Like tourist traps that are overrun by the masses, investors flock to investments that are the most easily accessible and the ones that get talked about most. In the field of behavioral finance, two biases explain these behav- iors and also why mainstream investors stick to stocks or flock to the next big thing in investing.
I
interesting spots to visit and the best places to eat aren’t the tourist traps where the masses go. The best spots are usually the ones the locals rec- ommend. They are off the beaten path and away from the crowds, offering far more enjoyable experiences. Investments are like vacations. The most easily accessible investments and the ones that make the most
62 | think realty magazine :: may – june 2022
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