A bit of positive news going into the weekend: the S&P 500 closed above 1,500 today and is about 5 percent off its all-time high set back in 2007. It seems that small investors, many of whom bailed on the market during the financial crisis, have returned to Wall Street with renewed confidence.
Market experts attribute a stronger economy and a short-term solution to the debt ceiling crisis in renewing faith among investors. At the same time, experts say that many won’t see their portfolios return to pre-financial crisis levels because they exited at exactly the wrong moment and missed out on a chunk of Wall Street’s current rally.
But in the face of tremendous financial uncertainty, human nature often trumps the ability to ride out a storm. Financial expert James O’Shaughnessy understands the internal battle that many investors face. At The Big Picture Conference, he provided insight on how human nature influences, and is influenced by, behavior on Wall Street.