Behavioral finance is a sub-field of behavioral economics. It proposes psychology-based theories to explain stock market anomalies, such as severe rises or falls in stock price. The purpose is to identify and understand why people make certain financial choices.Read the Press Release
Behavioral Advisors redefine the relationships between advisors and clients by instituting insights on biases, risk-tolerance, cultural and emotional characteristics. They use psychology and behavioral science to remove emotional friction and “coach” their clients based on the techniques they learned from academics, research scientists and practitioners, that can help maximize outcomes for the end investor. They also identify patterns and behaviors to mitigate risks.
Read the exclusive blog on September 11, 2020.
Listen to the BeFi Podcast, Advisor Behavioral Finance Trends Amid Covid-19 w/Omar Aguilar, PhD, brought to you by the Investments & Wealth Institute in partnership with Charles Schwab Investment Management Inc. 0820-0NXYListen to the Podcast
Get the latest in behavioral finance tips and best practices to ensure that in volatile times, clients are making decisions that are objective, fact-based and best for their long-term goals. We have a full library of online resources to help get you up-to-speed and ready to act with confidence, knowledge and facts.Visit the BeFi Resource Center
In today’s ever-changing landscape it is important to raise awareness about the benefits of behavioral finance for advisors and their clients. Our field research helps to educate advisors like you and your clients about the biases that drive disruptive decision making. Now, more than ever, advisors are turning to the world of behavioral finance to help navigate these uncertain times and our research helps uncover the struggles advisors face and offers methods to improve client conversations.
Charles Schwab Investment Management, Inc. (CSIM) is the investment advisor for Schwab Funds, Laudus Funds, and Schwab ETFs and provides non-discretionary advisory services to the Charles Schwab Trust Bank (CSTB) Collective Trust Funds (each a “Trust”, collectively the “Trusts” or “Collective Investment Trusts (CITs)”).Schwab Funds and Laudus Funds are distributed by Charles Schwab & Co., Inc. (Schwab), Member SIPC. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). CSIM, Schwab, and CSTB are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation and are not affiliated with SIDCO. 0820-OFFW