Overconfidence, loss aversion are key predictors for investment mistakes

The recent stock market decline from its high point has caused concerns for many investors who are affected by short-term market trends. However, experts say now is an important time for investors to remember that many mistakes can be made in this economic environment. In a new study, a personal financial planning expert from the University of Missouri has identified several risk factors for people who are more likely to make investment mistakes during a down market. Rui Yao, an associate professor of personal financial planning in the MU College of Human Environmental Sciences, has identified overconfidence as a key factor causing people to make common investment mistakes.

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