…in the real world. But it didn’t. The reason is that Jim understands that managing our behavior and biases trumps all of that in importance. So instead of focusing on…
Search Results for: psychology OR behavior
Swedroe: Global Diversification is Key
…in which investors allow more recent returns to influence their decision-making. Swedroe argues that investors tend to exhibit behaviors that are destructive to returns, which he illustrates using the concepts…
Howard Marks on Improving Investing Odds
…more to psychology than to fundamentals—and psychology can neither be predicted nor timed. Regarding emotion, Marks argued that “it starts with the question of whether or not you accept that…
Robo-Analyst Sifts Through "Happy Talk" on Earnings Calls
…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…
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…