Getting Comfortable With Change
Some of us really like the status quo. Even when we have a better alternative, many of us are content to keep on doing what we’re doing. I think about this every time my wife and I swap cars. Depending...
Genes, Experience Affect Choices
Are you a value investor or a growth investor? Could your preference be influenced by a biological predisposition partially ingrained from birth? Is it possible that your choice of investment could be explained by your personal experiences, both early on...
A Game You Shouldn’t Play
It seems like almost every week a new study appears to debunk the myth of active management. This week was no exception. Robin Powell, a U.K.-based journalist and financial blogger, discussed a recent study that covered 561 U.K.-based stock funds...
If You Don’t Like The Market Today, Just Wait Until Tomorrow
In my hometown of Baltimore, there’s an oft-heard saying that seems especially applicable when, like now, the seasons are changing: “If you don’t like the weather today, just wait until tomorrow.” For whatever meteorological reason, it’s not uncommon for an...
Foxes More Right Than Hedgehogs
Philip Tetlock, who teaches psychology, business and political science at the University of California, Berkeley, is also the author of “Expert Political Judgment: How Good Is It? How Can We Know?” The book, which was published in 2006, discusses the...
A Classic Factor Model Improves
There has been a great deal of focus by the academic community in recent years on fine-tuning the various factor models used to explain the differences in returns of diversified portfolios. Marie Lambert, Boris Fays and Georges Hubner contribute to...
Is Stock Picking Back?
Is it time for stock-pickers to make a comeback? That was the topic of discussion during a recent Trading Nation segment in which CNBC’s Brian Sullivan interviewed Stacey Gilbert of Susquehanna, and Phillip Streible of RJO Futures. Gilbert and Streible...
When Risk Goes Unrewarded
Risk-based asset pricing theory suggests, simply, that assets bearing a higher risk should compensate investors with higher returns. While most papers investigating the risk-return relationship of assets are focused on equity markets, surprisingly few studies explore this phenomenon in currency...
Measuring How Financial Advisers Handle Uncertainty
Remember how you felt during the financial crisis in 2008? People were scared. Even the professionals were uncertain about what might happen. I know, because I was scared, too. But I couldn’t show it. Whatever was going on, my clients...
Quick Take: Waiting for Rates to Rise
Brian Haywood Nobody really knows exactly when, or by how much, interest rates will rise. But that likelihood is already priced into the market. Director of Fixed Income Brian Haywood on what you need to know if they do, and...
