…a joyful occurrence for his confidence in the factor” because “Professor Fama has been taking the ‘risk’ side (vs. behavioral inefficiency) of the debate regarding why the value factor works…
Search Results for: psychology OR behavior
GMO's James Montier on Fed-Induced Bubbles, Alpha, and More
James Montier of Grantham Mayo van Otterloo’s (GMO’s) Asset Allocation team spoke with Advisor Perspectives recently about interest rates, behavioral biases, and other key factors affecting markets. He said that…
Charles Schwab CIO Liz Ann Sonders Sees the Market Within a Bull Pattern
…on market behavior.” She suggested the Fed is unlikely to tighten as rapidly as it had suggested, which portends well for the market in 2016. More broadly, she observed that…
Current Downturn is a Good Time to Pick Stocks, Says Mario Gabelli
Mario Gabelli of GAMCO told CNBC that he thinks the downturn “is good. This is what markets are supposed to do. Psychology and human behavior is supposed to give you…
Volatility and Investor Behavior in Today’s Uncertain Market
The PBS Newshour reports on recent market volatility, noting a series of contributing events. Liz Ann Sonders of Charles Schwab said, “a lot of [the current volatility] really is unfisnished…
How Market Surprises can Impact your Thinking
Jason Zweig of the Wall Street Journal highlights the effects of surprises on investor psychology, drawing on neuroscience and historical events back to the 18th century. Robert Shiller of Yale…
Working through the Pain for the Best Long Term Gain
…take it as a good sign.” This approach reflects insights from psychology and behavioral finance. The “pain” Roth is referring to comes from going against the cognitive biases of the…
John Bogle Suggests Low Returns Likely Over the Next Decade
…Bogle suggests that investors may be able to realize about a 3% return by buying longer-term bonds. He also notes that mutual fund fees, and investor behavior (such as buying…
John Bogle Suggest Low Returns Likely Over the Next Decade
…Bogle suggests that investors may be able to realize about a 3% return by buying longer-term bonds. He also notes that mutual fund fees, and investor behavior (such as buying…
The Advantages of an Active Value Management Approach
…According to the newsletter, “the DNA of value investing . . . has always been in bottom-up research and human psychology.” Thus, the newsletter suggests there is a meaningful difference…