The volatility in the pandemic-era equity markets have given a rare glimpse into specific behavioral biases that usually aren’t as apparent during “normal” times, contends an opinion piece in CFAInstitute…
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What We Should Remember About Bear Markets
…urge to make short-term trades irresistible. Everyone has an investment plan until they experience a bear market. Watch/Listen to Joe Wiggins discuss investor behavior on the Excess Returns podcast. https://youtu.be/8C6JKZZ2_YA…
Losses Mount Among Retail Investors
…pulled way back. That retail trading behavior might be something to watch for those looking for an indication of the market’s bottom, says Morgan Stanley analyst Christopher Metli. “…the next…
Investing’s Four Horsemen
…also encourage bad investor behavior such as selling at the peak. That’s more advantageous to managers than investors. And of course, brokerages who encourage meme stocks was a hot topic…
Buffett: Markets Becoming A “Gambling Parlor”
…bets, and derided the risky behavior that’s rampant among investors these days, he pointed out that the current volatility has given Berkshire the opportunity to seek out undervalued companies to…
The Five Biggest Mistakes I Have Made in My Career Managing Quant Strategies
…investment strategies can’t be built in a vacuum. They need to account for the behavior of the investors that will use them. [3] Relying Too Much on Single Factors I…
AI Could Help Investment Decisions
…and make better decisions by addressing pitfalls such as herd behavior. AI doesn’t possess herd-like tendencies; it won’t invest in something because everyone else is. Another bias that investors lean…
5 Two-by-Two Matrixes That Can Help You Become A Better Investor
…The first matrix comes courtesy of Howard Marks, co-founder of Oaktree Capital Management. In Marks’ 2006 memo, “Dare To Be Great”, he talks about unconventional behavior and contrarian investing. Most…
Small Growth Funds Had a Great Run But Their Investors Did Not
An article in CityWireUSA quotes the maxim “the more volatile the asset class, the worse the investor behavior,” and examines the active funds in Morningstar’s Small Growth category to back…
Tech Stock Rout A Loyalty Test For Wood’s ARK
…to raise U.S. interest rates, and investors are shifting their behavior in accordance, pulling back from the riskiest positions. ARK’s ETFs are in the middle of the sell-off that’s also…
