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…
Tag: Investor Expectations
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…