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…
Tag: Behavioral Finance
Don’t Take Election Stress Out on Your Investments
In the wake of the election, heightened emotions could lead some investors to act “in the heat of the moment” and make personal financial decisions that “prove costly.” This according…
Excess Returns, Ep. 29: Timeless Investing and Life Lessons with Jim O'Shaughnessy
In this week’s episode we are privileged to be joined by Jim O’Shaughnessy. Jim is a pioneer in quantitative investing and the founder of O’Shaughnessy Asset Management. He is also…
Excess Returns, Ep. 19. The Dangers of Hindsight Bias
Whenever we are confronted with a bear market, we all want to figure out how it will play out. We want to know how big the decline will be. We…
Thaler Warns to Sell Losers Before 2019
In a recent interview with Barron’s, behavioral economist and Nobel Laureate Richard Thaler said that although investors should sell their losing stocks at year-end, they resist doing so. Thaler said,…
Investing Lessons from the Best Poker Players
Researchers on game theory say that poker strategies can translate into lessons for investors, according to a recent article in The Wall Street Journal. Carnegie Mellon professor of philosophy Kevin…
Behavioral Finance and the Investment Process
In a recent podcast by CFA Institute, Clare Flynn Levy shares insights regarding the role that behavioral economics plays in investment decisions and the experiences that led rought her to…
Challenging the Biggest Idea in Behavioral Finance
In a recent article for Bloomberg, columnist Barry Ritholtz rebuts the notion presented in a recent paper that the theory of loss aversion is a fallacy. The idea that people…
Human Error and Behavioral Biases
A recent article in Morningstar addresses the subject of behavioral biases and how they affect investment decision-making. “Most investors,” it says, “could improve their portfolio risk management by turning the…
Swedroe Reviews New Book on Behavioral Investing
In a recent article for Institutional Investor, BAM Alliance Director of Research Larry Swedroe included Daniel Crosby’s new book The Behavioral Investor as one of his favorites on the study…