Jeffrey Dow Jones

our own money on the line.

great, where does the name come from?Cognitive biases are shortcuts our brains use that make us draw incorrect conclusions. We have these biases because our brains like shortcuts more than heavy-duty thinking. Cognitive dissonance is a big bias that’s particularly dangerous for investors. It’s what happens when people receive evidence that contradicts their previously held beliefs. They react in strange, irrational ways. The classic example is Aesop’s fox. The fox sees some grapes up in the tree but can’t figure out how to get them. So he concludes that the grapes are sour and not worth eating. The evidence that he can’t climb the tree creates disharmony in his little fox brain and so he draws an incorrect conclusion about how tasty the grapes are. As you can imagine, when you get money involved, that kind of bias and data-rejection can get expensive.The opposite of cognitive dissonance, of course, is Cognitive Concord. Our goal is to get our analysis and the data to sing in harmony. It takes more thought, but that’s how you make better investments and avoid making stupid decisions.

some of the most powerful trends shaping the economy to come. The result is a sensible, flexible investment strategy that’s easy to implement – whether you’re an investor at home or an industry professional.