Editorial – Unsolvable Problems Behavioural Finance, Editorial In mathematics there are problems that can be expressed but not solved. Do financial markets represent such problems? Read More
The Illusion of Rationality Behavioural Finance, Factors, Quant & Systematic Not all problems are computable and there is good reasons to believe that many investment problems fall into this category, Professor Carsten Murawski of the Brain, Mind & Markets Lab says. Read More
In Search of Temperament IV Behavioural Finance, MarketFox In this fourth post on investor sentiment, we’ll consider self-awareness and self control. Jim Paul’s life story and the lessons that he learned will be our guide. Read More
The Pain Premium Asset Allocation & Strategy, Behavioural Finance Could the discomfort an investor feels for holding certain positions be the reason why certain factors don’t get arbitraged away – a pain premium of sorts? Read More
In Search of Temperament III – Patience Behavioural Finance, MarketFox Patience is a critical attribute of successful investors, but facing pressure from clients or colleagues is not always easy. Read More
In Search of Temperament II – Contrarianism Behavioural Finance, MarketFox In this second instalment of the series on investor sentiment, MarketFox columnist Daniel Grioli delves deep into the mindset of contrarian investors. Read More
We are all Actors in the Play of Economics Behavioural Finance, Economics The way we think and speak about investments shapes the industry we operate in, Tony Day says. The realisation that we are all actors in the play of economics should make us more aware of the importance of culture in setting an investment strategy. Read More
What Trait Psychology Tells Us about Factor Investing – Part II Behavioural Finance, MarketFox Do factors have explanatory power in investment returns or are they merely descriptive? This is an important difference because the first characteristic would give them predictive powers, while the second would merely reflect past performance. In this second part on trait psychology, MarketFox columnist Daniel Grioli looks for clues in criticism of this branch of psychology. Read More
Heuristics are Biased. But are They Lazy and Dumb? Behavioural Finance, MarketFox In this second instalment of the four part series on the criticisms of behavioural economics, MarketFox columnist Daniel Grioli looks at heuristics: are they lazy and dumb? Read More
