The biggest mistake investors make is being too influenced by the latest headlines, according to a new study from Charles Schwab
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- Advisers say being easily influenced by recent news or events is the top misstep clients make when investing, according to a new study by Charles Schwab Investment Management.
- The study broke down top behavioral biases that advisers observe in clients. It's important to consider behavioral finance because of recent market volatility, said Omar Aguilar of CSIM.
- Different generations have different top biases, the study showed.
- Having awareness of behavioral biases and a clear plan to deal with them is the best way forward, the study said.
- Read more on Markets Insider.
A new study of advisers found that recency bias — or the tendency to be easily influenced by the latest news, events, or experiences — was the top mistake that they saw clients making when deciding how to invest.
The study, conducted by Charles Schwab Investment Management and Cerulli Associates, took a dive into behavioral biases that all investors grapple with when making decisions about their money.See the rest of the story at Business Insider
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