An excellent read:
Why We Think We’re Better Investors Than We
Are by GARY BELSKY
The average investor is highly delusional about his/her
ability –
““Nearly two-thirds
rated their financial sophistication as advanced,” said Mirtha Kastrapeli, a
senior research analyst at State Street. “This seemed a little optimistic, so
in our 2014 study, The Folklore of Finance, we ran a financial literacy exam.
The average score was just 61 percent, barely a passing grade. This disconnect
between actual and perceived financial sophistication, she explains, is
evidence of how widespread the overconfidence bias is.””