Heron Financial’s Edwards Sees ‘Lizard Brain’ Problem (Audio)


David Edwards, founder and president of Heron Financial Group, says the fundamental pluses for the stock market outweigh the minuses and it is still a good time for investors who are working and saving for retirement to hold a big portion of their portfolios in equities. He discusses the latest survey of investor behavior from Dalbar Inc. which shows that over the last 20 years the Standard & Poor’s 500 Index gained 9% while the average investor earned just 5% by chasing fads and over trading. He says the human brain is such that investors who were burned in the last downturn are being driven by the “lizard” part of their brain – the part that remains in “fight or flight” mode whenever they think about getting back into the market – and missing out on the rally. Edwards speaks with Bloomberg’s Kathleen Hays and Vonnie Quinn on Bloomberg Radio’s "The Hays Advantage.”

Listen to the interview at Bloomberg.