05 July 2013

Weekend Reads for Financial Advisors: Behavioral Finance, Investing, and Saturn

By Lauren Foster

Posted In: Weekend Reads

Here are some great reads that were recently published, in case you missed them.

Behavioral Finance

When last did you see — or perhaps more accurately, have you ever seen — the Winklevoss twins (think: FB), Humpty Dumpty, and bitcoins in one blog post? Felix Salmon pulled it off this week with his post “Financial Innovation of the Day, Winklevii Edition.” (Reuters)
Twelve lessons on the pyschology of investing. (25iq)
@Noahpinion puts forth a behavioral finance reading list. (Noahpinion)
@jasonzweigwsj explains why investors need to be saved from themselves. (Wall Street Journal)
@farnamstreet asks: Why is the behavior of others so compelling? (Farnam Street)
What did @Chris_arnade learn after spending 20 years on Wall Street? It wasn’t how to be a better trader. (Scientific American)

Investing

What is the most important concept in wealth management? The folks at Darwin Investment Strategies (who came up with that name?) suggest it is:
1. Risk is measured as the probability that you won’t meet your financial goals.
2. Investing should have the exclusive objective of minimizing this risk.
“Modern Portfolio, 2013” (The Reformed Broker)
In “The Sharpe Edifice,” @researchpuzzler examines Sharpe ratios. (The Research Puzzle)
My colleague @TheIntuitInvest has an excellent bond convexity primer.(Enterprising Investor)
Investors pulled $9.9bn from Pimco’s Total Return bond fund in June, the largest outflows in the fund’s history. (Financial Times)
“Bets, Beliefs, and Portfolios: Some Further Observations on the Theses of Bryan Caplan” and a retort, “Bets and Beliefs.” (Marginal Revolution)
Five shocks that could short-circuit stocks. (USA Today)

Retirement

“Strategies for the Retirement Red Zone” (Advisor Perspectives)
“Rowboats for Retirement” (New York Times)
“The Price Your Clients Pay for Using Safe Withdrawal Rates” (Advisor Perspectives)

Philanthropy

“Two Paths for Charitable Giving: From the Head or From the Heart” (New York Times)

Social Media

“Social Media: Why It Will Change the World” (The Huffington Post UK)

And Now for Something Completely Different

The trailer for the upcoming (2014) documentary “In Saturn’s Rings.” (i09)

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

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About the Author(s)

Lauren Foster

Lauren Foster was a content director on the professional learning team at CFA Institute and host of the Take 15 Podcast. She is the former managing editor of Enterprising Investor and co-lead of CFA Institute’s Women in Investment Management initiative. Lauren spent nearly a decade on staff at the Financial Times as a reporter and editor based in the New York bureau, followed by freelance writing for Barron’s and the FT. Lauren holds a BA in political science from the University of Cape Town, and an MS in journalism from Columbia University.