[Verse 1] When making choices with your money Your brain plays tricks that aren't so funny Anchoring to the first price you see Availability makes recent news seem key Representative thinking leads you astray Yesterday's winner won't win today [Chorus] Behavioral finance, it's in your mind Cognitive biases leave logic behind Emotional pulls make you buy and sell Know your patterns and invest well A-R-A-O-C-H that's the cognitive way F-M-S-E-L-R emotions hold sway [Verse 2] Overconfidence makes you think you know Confirmation bias lets bad ideas grow Hindsight bias says "I saw it coming" Framing effects keep your mind running Mental accounting splits your cash in bins Status quo says "don't change, just stay in" [Chorus] Behavioral finance, it's in your mind Cognitive biases leave logic behind Emotional pulls make you buy and sell Know your patterns and invest well A-R-A-O-C-H that's the cognitive way F-M-S-E-L-R emotions hold sway [Bridge] Markets move with herding crowds Momentum builds when voices get loud Bubbles form from information cascades Disposition effect keeps bad trades Loss aversion makes you hold too tight Regret aversion clouds your sight [Verse 3] Portfolio managers need to see Which biases rule your strategy Accommodate when you can't change the mind Moderate when better paths you'll find IPS construction starts with knowing you Behavioral profiles guide what advisors do [Chorus] Behavioral finance, it's in your mind Cognitive biases leave logic behind Emotional pulls make you buy and sell Know your patterns and invest well A-R-A-O-C-H that's the cognitive way F-M-S-E-L-R emotions hold sway [Outro] Endowment effect makes you love what's yours Self-control issues open risky doors Know yourself before you invest your gold Behavioral finance helps your story unfold
← Performance Evaluation | Wealth Planning (Private Wealth Management) →