Research Report: Investor Behavior Tools to Apply in the Current Market | February 2021

LEGENDARY INVESTOR BENJAMIN Graham once said, “The investor’s chief problem—and even his worst enemy—is likely to be himself.” Financial advisors have it even worse, needing to manage their own biases as well as those of their clients. The equity markets have been turned into a casino game once again with Reddit taking the place of the old AOL chat rooms of 1999. It is clear to us that fundamentals are not driving asset values and have not been for quite some time. GameStop (GME) is an extreme example of this. The purpose of this American Portfolios (AP) Research Report is to address events that took place in the last week of January 2021 regarding GME and other heavily-shorted stocks. We will do so briefly from a market perspective, but more so to discuss the topic of investor behavior and how we can use the various tools available to us to become better investors for our clients.

Click here to read the entire AP Market News Flash from CIO Cliff Walsh, CFA.


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