CFA Institute Blogs
James Owen Weatherall argues that given the proven track record of applying ideas developed in physics to finance, it is time to do it again. His book is about the future of finance and the new set of tools that will facilitate the proper functioning of the world’s economies. Read more
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Despite numerous studies attempting to link volatility to changing fundamentals, research shows that investor emotions are the root cause of the vast majority of these price changes, according to C. Thomas Howard. Read more
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As modern portfolio theory fades in reputation from intense pressure from behavioral finance, many researchers are seeking to fill the void with behavioral finance applications. Behavioral portfolio management is one such model. Read more
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Some of the most popular articles from last month include pieces that scrutinize financial charts, the Bank of Japan’s policies, and the recent moves of some of the most famous portfolio managers. Read more
Leave a CommentOften financial analysts are presented with statistical charts that purport to demonstrate an important — and, of course, investable — relationship between data points. These charts are supposed to be worth a thousand words and thousands of shares traded. But invariably these charts do not have an r-squared for the data displayed, or any other descriptive statistical data; just the seductive image. Read more
Leave a CommentKent Osband offers that the mathematics of turbulence provides a mathematical framework for bridging modern portfolio theory’s rationalism with behavioral finance’s irrationalism. Read more
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Global housing prices remain a popular indicator of economic activity. But overall, recovery in global housing markets seems mixed. Read more
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David Larrabee, CFA, rounds up the most interesting reads for equity investors from the last couple weeks. Read more
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Top posts from last month included a network analysis of Bloomberg’s Twitter a-list, dire warnings about the Fed’s policies from James G. Rickards, and discussions about alternatives to fiat money. Read more
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The chief investment officer at the Bass Family Office says that the expected quality of a hedge fund manager is a function of additional return, minimal volatility, a bias toward positive returns, and less big blow ups. Read more
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