…high expected returns.” Performance chasing is “as old as the hills” the article concludes, adding, “so this type of behavior is never going away.” The problem, however, is that “most…
Search Results for: psychology OR behavior
Why is Warren Buffett Buying Bank Stocks?
…some quite aggressively. We very much like this behavior because we believe the repurchased shares in most cases have been underpriced.” The article concludes with comments from Wells Fargo Investment…
Is Yale's David Swensen Horrible for Investing?
…model entitled, Pioneering Portfolio Management, Swensen writes, “Even with adequate numbers of high-quality personnel, active management strategies demand uninstitutional behavior from institutions, creating a paradox few successfully unravel.” And while…
Challenging the Biggest Idea in Behavioral Finance
…place more weight on avoiding losses than accumulating gains–a central theory in behavioral finance—was challenged by a recent study that suggests “cognitive bias via loss avoidance doesn’t exist, and messages…
TV Ads and Stock Trading
A new study shows that TV commercials can have a real-time effect on investor behavior, according to a recent article in The Wall Street Journal. Researchers found that “TV ads…
Five Questions: Lessons From Finance History with Jamie Catherwood
…The discipline paid off. Jack: One of the most consistent things I have seen in looking at market history is the negative effect of investor behavior on returns. It seems…
Six Common Misconceptions About Factor-Based Strategies
…the efficient market hypothesis, then risk explains all the outperformance of factor models and if you aren’t, you may believe that there is also a behavioral explanation, but either way,…
The Gains and Losses Associated with Locking Up Money
…a longer-term view “in a world of itchy-fingered traders.” “While I’m a fan of the idea,” Zweig writes, “psychology and history suggest it is easier to imagine than to implement.”…
Momentum Investing - the What, the Why, the How and the Risks
…considered authorities on investment factors such as momentum and value. As they pointed out, thinking about the “why” behind momentum — whether it’s risk-based, behavioral or some combination of the…
Five Steps to Improve Investment Decision Making
…and increase their awareness of their behavior in high-stress situations.” By asking probing questions, a coach can encourage you to find “perspective that can lead to breakthrough ideas and solutions.”…