Monthly Archives - March 2018

A couple holding hands | stock market positive feedback may lead to lasting relationships | Sheaff Brock

Stock Market’s Ratio of Positive to Negative Feedback has been Spectacular

In improving team performance through feedback, corporate consultants Jack Zenger and Joseph Folkman report in the Harvard Business Review, the ideal praise-to-criticism ratio is 5:1. Negative feedback grabs attention, they concede, and has the power to change behavior, but it does not make people put forth their best efforts. Only positive feedback truly motivates vigor, determination, and creativity. In his book “What Predicts Divorce,” John Mordechai Gottman finds essentially the same thing in marriage—the single biggest determinant of wedded [...]

dice showing buy, sell, or panic | investor classes market volatility | Sheaff Brock

The 3 Classes of Investors; Only 1 Can Afford to Avoid the Game

The head of behavioral science at Morningstar, Dr. Stephen Wendel, describes investors in simple terms: There are those wealthy enough to meet all their financial goals with cash and then there’s everybody else. Members of the first class need not bother themselves with market volatility; the other two classifications of investors face an unavoidable trade-off, Wendel explains. Type #2 stay in the market, running the risk of failing to generate sufficient returns to meet their financial goals. Type #3 derail [...]