Euphoria to Capitulation

The Emotional Investor: An Interesting New Website

Euphoria to Capitulation

Recently, we came across theemotionalinvestor.org which is run by Jay Mooreland who, like Joshua Brown, can be described as a reformed broker. As a holder of the Certified Financial Planner (CFP) designation and a Master’s Degree in Applied Economics, Mr. Mooreland now provides educational seminars and tools for financial practitioners with respect to investor behavior. In his words, the seminars and tools answer the following question: “How can financial professionals anticipate investors’ behavior during volatile times and assist them in making more thoughtful decisions, promoting a better investment experience and outcome?”

We at Index Fund Advisors consider that to be a truly excellent mission statement, and we totally share that goal with Mooreland. So far, he has posted four articles to his blog, and of those, we especially like A Prescription for Investors Who Speculate which clearly articulates the difference between investing and gambling/speculating. It also correctly points out how the financial media has blurred the line between them by running headlines like “Investors Bet on Recovery in Oil Prices.” Naturally, the “prescription” is to have a well thought, deliberate investment plan and to avoid fixating on short-term outcomes. Mooreland correctly points out that the exemption from being judged on short-term performance is a huge advantage that individual investors have over fund managers (both hedge and mutual).

In addition to his blog, Mooreland has several articles that were previously published in respected journals. We found his case study of J.C. Penney to be especially insightful. If you don’t have the time to read the article, the 3-minute video on the home page provides an excellent summary. The other three videos are also well worth watching.

We wish Mr. Mooreland the best in his endeavors. He is definitely fighting the good fight.