Investors are neither rational nor irrational but normal, according to Meir Statman, a well-known expert on behavioral finance. By learning the science of investing, investors can learn to overcome their cognitive errors.
Diversification has been called “the only free lunch” in finance, and asset allocation is an important part of it.
Gregg S. Fisher, CFA, explains why investors should do a better job now, before the close of the 2012 calendar year, integrating their taxes and Form 1040 with their investment portfolio strategy.
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