T... - Behavioral Finance And Wealth Management: How

: To fight recency bias —the urge to buy more of whatever did well last month—Elena set a "rule-based" schedule. They would rebalance every six months, regardless of how they "felt" about the market.

The sun was setting behind the glass towers of the financial district as Elena, a seasoned wealth manager, sat across from her long-time client, David. David was an intelligent engineer, yet his portfolio was a chaotic mess of "hot" tech stocks and cash—a classic victim of the very human biases that behavioral finance seeks to solve. The Trap of the "Mental Bucket" Behavioral Finance and Wealth Management: How t...

Elena knew that to build an , she couldn't just show him spreadsheets. She had to address his psychology. The Strategy: "Behaviorally-Modified" Asset Allocation : To fight recency bias —the urge to