Regular readers know I enjoy discussing behavioral aspects of investing. The reasons for this are twofold: First, we can't control the markets, but we can control our own reactions to it (at least we can try). And second, many studies have shown that investors suffer from a behavior gap between what they should garner in returns and what they actually get. Of all of the failings of human wetware, the one I find most intriguing is cognitive dissonance. You can find technical definitions at Changing Minds, The Skeptics Dictionary or any number of other reference books. In the context of economics and investing, my ... (full story)