SmartStops comment:   Glad to see Richard Thaler win the 2017 Nobel Prize for documenting the way people’s behavior actually does not conform to economic models that portray them as perfectly rational.  As he states:  (Investors) “refuse to cut their losses on plummeting investments because they won’t own up to mistakes”.

Ironic though that in 2013 they awarded it to Eugene Fama for arguing that financial markets are rational.     But behavioral economics goes all the way back to Adam Smith, and his 1776 classic “The Wealth of Nations”, which emphasized the need to control impulses and avoid overconfidence.

As market corrections are inevitable, the struggle SmartStops faces is how to get people to take pay attention?  You take out insurance for when you drive, for your home etc.  Why not for your investments?     The ROI we provide is what Yahoo Finance called awhile back a “no-brainer”.    You may not need it for awhile but when you do, it sure helps you protect those assets.

source:  https://www.usnews.com/news/business/articles/2017-10-09/economics-prize-last-of-the-nobels-to-be-awarded

 

 

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