At the beginning of 2017, a common view among money managers and analysts was that the financial markets would not repeat their strong returns from 2016. Many cited the uncertain global economy, political turmoil in the US, implementation of Brexit, conflicts in the Middle East, North Korea’s weapons build-up, and other factors. The global equity […]
Investment belief: the judgmental vs. systematic debate Latest independent SPIVA outcomes: the year-end data for 2016 is now available and continues to illustrate that only 10% to 20% of active managers live up to their market beating (more expensive) promises. Over 15 years in the US around 60% of all equity funds fail to survive […]
Short term losses are common and a central part of growing wealth. Unfortunately, humans are hard wired to ignore their rational thought processes and to focus in on, and become emotional about, adjustments to share prices. Three key behavioral flaws, deeply embedded over millions of years surviving as a species, work against us.
December and January are a time for reflection and planning; a time to look back at the recent past and consider the near future. It’s also a time for the media’s perennial favourites: the review of the past year and outlook for the next. As entertaining as these may be, this type of commentary is […]
The financial services industry works by making products with names that resonate with investors’ emotions.