…explains that his team built the model on a foundation of psychology and computational linguistics, a process that allowed them to pinpoint four red flags: Omission—if a company reported a…
Search Results for: psychology OR behavior
Buffett's Letter: Shorter and Less Upbeat
…power,” the article says. Citing comments from Meyer Shields, an analyst at Keefe, Bruyette & Woods, Inc., it suggests that perhaps changes in consumer behavior (specifically, the increasingly rapid shift…
Robert Shiller Discusses Bubbles and Narrative Economics
…trained in economics and are reluctant to get involved in sociology, psychology, anthropology, or history.” The theme of his book, he says, is that “there are new ways of thinking…
Rush Hour Traffic and Market Corrections
…do it. “They buy assets that recently outperformed and sell those that have disappointed. This reactive behavior costs them dearly.” The article cites concepts outlined by Nobel laureate Daniel Kahneman…
Five Questions: Machine Learning in Investing with Kevin Zatloukal
…machine has suddenly become intelligent. (Here, machine learning is teaching us new things about human psychology as well!) While we can achieve high accuracy in predicting the word being spoken…
Where Has All the Alpha Gone?
…capitalize on) and some have coined the term “Behavioral Alpha” to describe it. But it is important to understand that behavior isn’t alpha. Behavior does, however, allow you to realize…
Housing Bear Predicts a Rough 2019
…confidence dipped in December. He argues that even if mortgage rates level off or ease a bit this year, “we are unlikely to see the psychology turn around. Homebuyers have…
Swedroe Offers Perspective to Panicky Investors
…2020 presidential election. Swedroe highlights his own concerns about investor behavior, including yield-chasing (in response to the low interest-rate environment the Fed created) which, in turn, “led them to abandon…
The Case Against Value Stocks
…is counterintuitive in some ways to think like this, but followers of value strategies want other value investors to panic during periods of underperformance. That bad behavior is in part…
Five Questions: Multi-Factor Investing with Liqian Ren
…approach. The guiding principal of factor selection and combination must start with common sense economic theory and human behavior roots, bolstered by empirical evidence. As recent papers such as Replicating…