Making Cents: What's the Worst Financial Habit?

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Factuality

Ownership

One of the most striking features of household financial behavior is that they rarely take action, despite the fact that interest rates, prices of financial assets (stocks and bonds), their own financial circumstances, and the terms of financial contracts are constantly changing. Researchers John Y. Campbell and Tarun Ramadorai conclude this. There is, therefore, a state of inertia. The question is why this is the case, given that this inertia i…