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The Human Factor in Evidence-Based Investing

Over the past several months, our blog series on evidence-based investing has explored the ways we can use stock and bond market factors to help drive an effective investment strategy.

We turn now to what is arguably the most significant factor in evidence-based investing: the human factor.

Despite everything we know about efficient capital markets and all the solid evidence available to guide our rational decisions, we’re still human. We’ve got things going on in our heads that have nothing to do with solid evidence and rational decisions—a brew of instincts and emotions that spur us to leap before looking.

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