Want to invest wisely? Check your prior beliefs at the door
It shouldn’t be hard to convince someone to take good financial advice. After all, everyone wants to have a good return on their investments.
But new research from MIT Sloan suggests otherwise: Some investors cling to their existing beliefs and underestimate good financial advice and, consequently, lose out.
“Sometimes people think they know more than they actually do,” said MIT Sloan professor co-author of a new study that tests how retail investors assess different types of financial advice and update their beliefs based on that advice. “This is particularly problematic because, even if you…
