Infographic: Is Human Behavior Hurting Your Portfolio?

In the current investment environment, behavioral finance is relevant as we assess the tradeoffs between active, passive and passive plus strategies. Additionally, we wrestle with what is likely to be a low-return environment influenced by automated trading programs, newly devised (and largely untested) quantitatively composed instruments, and ceaseless flows of data-driving market activity. A strategic, long-term approach will add value amid what can seem like chaos; those who devise such approaches need to be aware of their own unintended biases.

Effective governance of an investment portfolio requires institutions to consider an array of risk- and return-based information about asset allocation, manager selection and performance evaluation. To be good stewards and make better decisions, committees should be cognizant of the way in which less-than-ideal psychological influences are at work in most human decision-making.

Confirmation/familiarity bias traits and considerations

Learn to focus on the facts

Contact your SunTrust relationship manager or investment advisor at 866.223.1499 or visit us at

This content does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.