Investing

[ad_1] The eye of a hurricane is a deceivingly perilous place. Those lucky enough to enter it unscathed may enjoy a well-deserved respite, but the blue skies and calm winds also create a false sense of security and encourage complacency. Some people may even be convinced that the storm has […]

[ad_1] Traditional investment approaches assume investors have equal access to market information and make rational, emotionless decisions. Behavioral finance, championed by Richard Thaler, Daniel Kahneman, and Amos Tversky, challenges this assumption by recognizing the role emotions play. But the ability to quantify and manage these emotions eludes many investors. They […]

[ad_1] Introduction Around 90% of US drivers rate themselves as safer and more skillful than average. Obviously, such perceptions do not reflect reality. After all, 9 out of 10 people can’t all be above average. Nevertheless, the results are compelling: They illustrate an innate human tendency to overrate our own […]

[ad_1] Machine learning is set to transform investment management. Yet many investment professionals are still building their understanding of how machine learning works and how to apply it. With that in mind, what follows is a primer on machine learning training methods and a machine learning decision-making flowchart with explanatory […]

[ad_1] For more insights on the equity risk premium (ERP) from Rob Arnott, Cliff Asness, Mary Ida Compton, Elroy Dimson, William N. Goetzmann, Roger G. Ibbotson, Antti Ilmanen, Martin Leibowitz, Rajnish Mehra, Thomas Philips, Jeremy Siegel, and Laurence B. Siegel, check out Revisiting the Equity Risk Premium, from CFA Institute Research Foundation. […]

[ad_1] Since their emergence in the 1970s, defined contribution (DC) plans in the United States have evolved. One notable change has been a shift in how they develop investment lineups for participant-directed DC plans. Plan sponsors are progressing from simply using commonly held investment beliefs to creating a structure that […]

[ad_1] What are the keys to a successful finance career? Eric Sim, CFA, has thought about that question a lot. As a university lecturer and author, he had to give his students and readers a logical framework to follow, and 20-odd unconnected tips were not going to do it. So […]

[ad_1] Demand Destruction ≠ Disinflation Global central banks have made an “all-in” effort to front-load policy tightening to dampen demand. But softer economic data in the United States and the eurozone have exacerbated recession fears. As the growth outlook dims, many anticipate demand destruction to lead to lower inflation. That […]

[ad_1] The Case for Long-Term Value Investing: A Guide to the Data and Strategies That Drive Stock Market Success. 2022. Jim Cullen. Harriman House. The bright yellow dustjacket of Jim Cullen’s The Case for Long-Term Value Investing suggests either caution or sunshine. On the cautious side, investors acknowledge that market-exposed […]

[ad_1] “Our monetary policy deliberations and decisions build on what we have learned about inflation dynamics both from the high and volatile inflation of the 1970s and 1980s, and from the low and stable inflation of the past quarter-century. These lessons are guiding us as we use our tools to […]