Individual Investors' Behavioral Biases Lead to Poor Long-Term Returns
The article discusses how individual investors often make irrational decisions when it comes to investing due to various behavioral biases. These biases include things like overconfidence, narrow framing, and aversion to ambiguity. As a result, individual investors tend to earn poor long-term returns. The researchers reviewed existing studies to highlight these biases and suggest potential solutions to help investors make better decisions in the future.