The Just Noticeable Difference; Implications for how we Spend, Save, and Invest

Perceiving change can be a funny thing. Why is it we don’t notice change when it is happening right before our eyes? How do you know when something is materially different? How much must change before we even realize there is a change afoot? Well, it’s called the Just Noticeable Difference (JND) and it has many implications in our financial lives.


What Investing and Tennis Have in Common

According to academic research there are two kinds of games in tennis; those games played by professionals, and those played by the rest of us.  In amateur tennis the outcome is determined by the mistakes made by the loser, rather than the shots made by the winner. Likewise, those who insist on trying to beat the market, either on their own or with professional managers, will be disappointed by the results. Like tennis, investing is a loser’s game.