…that the average yield on the 10-year Treasury of 2.35% fuels this “behavioral quirk,” keeping share valuations high. “The stock market is rich by just about any valuation measure,” it…
Search Results for: psychology OR behavior
Schwab Chief Strategist Warns of Market Headwinds in 2018
…of the cycle—and cites increases in both capital spending and productivity as indicators. “That doesn’t mean we’re at an imminent end,” Sonders explains, “but it’s later-cycle-type behavior.” She adds that…
The Importance of Expectations in Investing
…my irrational behavior for football and will stick by my prediction of a Jets trip to the Super Bowl until the day that becomes a mathematical impossibility (which unfortunately for…
The Most Hated (And Most Loved) Investing Factor
…a higher Price/Book ratio. This can have the effect of making a company look less attractive from a valuation standpoint, even though it is engaging in behavior that is beneficial…
Ritholtz on Why We're Bad at Forecasting
…forecasting their own behavior, what you are getting is a read of their emotional state.” Random and unforeseeable events introduce more error; Bad forecasts, writes Ritholtz, “are quickly forgotten, while…
The Biggest Failure of the Investment Management Industry
…efforts being made in the area of investor behavior and psychology, but the “behavior gap” has been shown to adversely affect returns significantly more than fees, so there is no…
Can Behavioral Economics Be a Channel to Profits?
…to psychological phenomena to try and explain it.” It cites examples of funds that attempt to “capitalize on the behavioral biases of investors,” such as those funds overseen by behavioral…
Wording in Press Affects Investor Expectations
A recent issue of the Journal of Economic Behavior & Organization offers insights as to how wording in the financial press affects investor expectations. Researchers conducted a study asking participants…
Four Thaler-Inspired Takeaways Investors Can Learn From
…paragraph could just as easily lead into a stock market chronicle outlining the vagaries of business cycles, stock price volatility and investor behavior. Which may explain why, after last week’s…
Podcasts of the Week: Pysh, Arnott & Thaler
…they should. The problem is that never happens in the real world. Richard Thaler is a leading voice in Behavioral Economics, which looks at how people actually behave and how…