Practical analysis for investment professionals

behavioral economics


Top Five Articles from June: Kahneman, India, the Kelly Criterion Reevaluated

Is loss aversion overstated? What fueled Portugal's recent economic recovery? These were among the topics covered in the leading Enterprising Investor posts from June.

Daniel Kahneman: Four Keys to Better Decision Making

"Regret is probably the greatest enemy of good decision making in personal finance," Daniel Kahneman says.

What Does Loss Aversion Mean for Investors? Not Much

Loss aversion may not influence investment decision making as much as we think, says David Gal.

Weekend Reads from India: Fraud, “Skin in the Game,” Nassim Taleb

The framework of investing a dollar and then earning a succession of pennies is ubiquitous. But it has limitations. A recent bank scam in India illustrates this point, writes Shreenivas Kunte, CFA.

Weekend Reads from India: Cures and Prevention, Time Inconsistency

The preference for cures over prevention is an alluring trap, writes Shreenivas Kunte, CFA, in Weekend Reads from India. Economists have a name for this well-known behavioral trait: time inconsistency.

Best of 2017: Behavioral Finance and India

In his roundup of the best content of 2017, Shreenivas Kunte, CFA, focuses on Richard H. Thaler and other compelling behavioral finance-related content as well the most insightful stories from India.

Top Five Articles from October: Thaler, Trillion-Dollar Coins, Volatility

An unorthodox solution to the US retirement crisis from Sloane Ortel; a discussion of Nobel laureate Richard H. Thaler's contributions to economics by Lauren Foster; and an analysis of the value of self-awareness by Jim Ware, CFA, are among the top EI posts from October.

Nobel Laureate Richard H. Thaler on the End of Behavioral Finance

Richard H. Thaler, the US economist who elevated the word “nudge” from transitive verb to political catchphrase, can now add “Nobel laureate” to his impressive biography. Lauren Foster discusses Thaler's contributions to the field of economics.

Gauging Market Sentiment: Selling Greed Is Harder Than Buying Fear

Where do we stand today from a market sentiment perspective? And how does one assimilate sentiment and crowd psychology and use it to make informed, intelligent investment decisions? Greg Blotnick, CFA, explains.

The Behavioral Continuum: What’s the Best Behavioral Bias?

Much of the content on behavioral finance carries with it an unnecessary negative spin. Behavioral biases are cast as illogical and counterproductive, potentially even disastrous. And they can be. But behavioral patterns are also useful anchors for successful investment decision making. So we asked readers of CFA Institute Financial NewsBrief which behavioral bias was the most useful.



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