A recent Kiplinger article offers an overview of an interview with Raife Giovinazzo, Ph.D., a partner at Fuller & Thaler Asset Management, a firm that invests based on behavioral finance…
Tag: Investor Behavior
Ritholtz on Why We're Bad at Forecasting
Forecasts are unproductive, writes Barry Ritholtz in a recent Bloomberg article, and we should not make investment decisions based on them. Ritholtz offers a list of reminders for readers of…
Can Behavioral Economics Be a Channel to Profits?
Psychological biases lead to market overreaction and underreaction, and it can be difficult to discern which is happening at any given point, according to a recent article in Bloomberg. “For…
Lessons From Over a Decade of Managing Money Using Quant Strategies
By Jack Forehand — When we started managing money, I used to focus on what I knew. Today, after over 12 years doing it, I have learned it is best…
Investor Behavior Shows Delayed Reaction to News
A new study by Columbia Business School economists shows that the influence of news on financial markets is “often greater a year after the report than a month,” according to…
Investor Returns Hurt by Attempts to Time the Market
The average investor has lagged behind the average fund for the past 10 years, writes Russel Kinnel, Director of Mutual Fund Research at Morningstar. The reason, he says, is that…
Stock Picks for the Level-Headed Investor
When buying stocks, it is essential for investors to value process over outcome, says guru James O’Shaughnessy during a recent speaking engagement. This according to a recent Nasdaq article by…
Greenblatt Blends Active and Passive Strategies in New Fund
Joel Greenblatt, managing partner of Gotham Asset Management, may have figured out a way to make active strategies appeal to passive investors, according to a recent article in Forbes. The…
The Realities of Pretend Investing
At the end of November, The New York Times ran an article by columnist and CFA Carl Richards that addresses how the tendency to invest based on emotion rather than…
Adding Momentum to Your Portfolio
The tendency of recent market performance to persist, an effect known as momentum, has been pervasive even though it is a “blatant violation” of what you would expect in an…