At a recent behavioral finance conference, I sat on a panel that addressed the idea of behavioral alpha. We know that most individual investors create negative alpha. This lost opportunity is arguably a much more important source of negative alpha for most people. In sum, behavioral alpha is about building our skills and knowledge about both the financial markets and our own decision-making processes. For all of us, getting our behavioral alpha from very negative to close to zero, would be an enormous benefit.

Source: Forbes April 20, 2019 09:56 UTC