Chapter 9. Who Are You? Investor Profiles and the Case for Asset Allocation
Investors are bound by the common decision to make money in the stock and bond markets. And from here we diverge in a thousand and one ways. Any investment decision we make should be based on information, but the information that can direct our actions is varied and various. This greatly disperses our behavior. Still, strong forces, often outside our control, work on the investment decision-making process. In particular, transaction costs and risk considerations each greatly influence the investment choices we make.
As for the costs, if we don’t believe we can afford or overcome the fees related to certain investments, we will steer clear of those investments. At other ...
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