Bridging the Confidence Gap In the world of finance, the effects of the "confidence gap" can be especially apparent. Share | Have A Question About This Topic? Address Thank you! Oops! Related Contents What Smart Investors Know Smart investors take the time to separate emotion from fact. A Look at Diversification Diversification is an investment principle designed to manage risk, but it can't prevent against a loss. Inflation and Your Portfolio Even low inflation rates can pose a threat to investment returns.