In a recent article for Advisor Perspectives, Nobel laureate Robert Shiller discusses the recent, confoundingly positive performance of the stock market against a backdrop of negative news. Shiller writes, “At…
Tag: Investor Psychology
World’s Worst Market Timer: A Story and A Lesson
By Justin Carbonneau Imagine this: 80 years ago, you won a prize that promised 13 payments of $10,000 to be paid out over time. You think you’ve finally got lucky,…
Famous Poker Player Helps Investors Play Tough Hand
In recent interview with Barron’s, award-winning poker player Annie Duke shares insights about how investors can remove emotions from decision-making and “how global markets are really just one giant poker…
Behavioral Finance and How to Avoid Making Poor Investing Decisions
In a recent episode of the Validea podcast Excess Returns, Justin Carbonneau and Jack Forehand had an in-depth discussion about the coronavirus pandemic with Daniel Crosby, Ph.D., chief behavioral officer…
Excess Returns, Ep. 21: Interview: Psychology and COVID-19 with Dr. Daniel Crosby
In this week’s episode we shift gears a little from our usual investing focus. We wanted to spend some time talking about the current COVID-19 crisis and its impact on…
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…
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…
Five Questions: Factor Investing with Jim O’Shaughnessy
By Jack Forehand (@practicalquant) Factor investing has grown dramatically in recent years. But it is far from new. As those of us who invest using factors seek to learn more…
The Bull Market Has Bred Skepticism
The bull run that followed the 2008 financial crisis is widely considered the greatest of the past century, but according to an article in The New York Times, “despite the…
Five Questions: A Wealth Manager’s View of Factors with Michael Batnick
By Jack Forehand (@practicalquant) — Factor Investing poses some interesting challenges for wealth managers. On one hand, the evidence is very strong that investing using factors produces superior to returns…