Practical analysis for investment professionals

Behavioral Finance


Regret and Optimal Portfolio Allocations

To understand risk for portfolio optimization purposes, we need to consider regret.

The Active Management Delusion: Respect the Wisdom of the Crowd

"Neither the Financial Analysts as a whole nor the investment funds as a whole can expect to ‘beat the market,’ because in a significant sense they (or you) are the market."

Debunking the Myth of Market Efficiency

Market complexity transcends disciplines and cannot be entirely modeled out.

Decoding the Crypto Mindset with NLP: Bitcoin, Reddit, and FTX

How does crypto investors' reliance on social media drive crypto market behavior?

Redefining the Retirement Income Goal

Spending flexibility must be better incorporated into the tools and outcomes metrics with which financial advisers advise clients.

How Goals-Based Portfolio Theory Came to Be

Investing is never done in the abstract. Investing is — and always has been — goals-based.

Equity Risk Premium Forum: MMT, Looking Back, Looking Ahead
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"There’s one aspect of MMT that I have some sympathy for: the notion that what we spend money on is far more important than how we finance it." — Cliff Asness

Fundamental Value Revisited? Three Investing Tips for “Absolutely Crazy” Conditions

What do we do in an environment where fundamentals begin to take a backseat to public policy?

Lessons in Behavioral Bias: The COVID-19 Equity Markets

The pandemic-era stock markets have been a showcase of behavioral biases in action.

Equity Risk Premium Forum: The Deficient Market Hypothesis
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"If we thought of the equity premium as a fear premium," Rob Arnott says, "a lot of the so-called anomalies that we’ve talked about would not be anomalies at all."