Practical analysis for investment professionals 
John Coates, senior research fellow in neuroscience and finance at the University of Cambridge, offers a number of fascinating lessons from a booming new field, the biology of risk, revealing how risk taking and stress transform our body chemistry and drive us to irrational exuberance or pessimism. When such chemical surges overwhelm traders and investors, they tend to suffer either euphoric overconfidence or extreme timidity. 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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In economic and financial matters, paternalism — protecting an individual from himself or herself — comes in many guises with one common theme: the maximization of welfare. Yet it raises a question with no easy answers: When exactly should individuals or investors be protected from making their own bad choices? Read more
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Lauren Foster rounds up recent articles and resources that may be of interest, beginning with a few on behavioral finance. Read more
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So what exactly is the behavior gap? It’s what happens when we let emotion get in the way of smart financial decisions. In other words, it’s the distance between what we should do and what we actually do. Read more
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What do quant great Edward O. Thorp, behavioralist Jamies Montier, and value investing legends, Benjamin Graham and Warren Buffett, have in common? These investment practitioners all make a seemingly incongruous appearance together in Quantitative Value, a new book by Wesley Gray and Tobias Carlisle. Read more
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The Graham and Dodd Awards recognize excellence in financial writing and honor Benjamin Graham and David L. Dodd for their enduring contributions to the field of financial analysis. Read more
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