By Jack Forehand, CFA, CFP® (@practicalquant) — To make money in the markets, one needs to be an independent thinker who bets against the consensus and is right. – Ray Dalio I am a…
Tag: Investor Expectations
Investors Should Look Harder At Expectations
An opinion piece in the Financial Times argues that investors should incorporate expectations into their investing decisions more rigorously. Studies have shown that price and value can converge quickly even…
Zweig: When High Returns Are Not Enough
A recent survey of individual U.S. investors indicates that they may be overly optimistic about returns in the coming year. This according to a Wall Street Journal article by columnist…
The Importance of Expectations in Investing (Ep. 63)
There is a common misconception that a good company is always a good investment. But that sometimes isn’t the case. The reason for that comes down to the role that…
The Role of Expectations in Investing
By Jack Forehand, CFA (@practicalquant) I am not one to go out to fancy restaurants very often. Most of the time, I tend to prefer cooking at home to eating…
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…
