C. Thomas Howard and Jason Voss, CFA, have called for the demise of modern portfolio theory (MPT) and the capital asset pricing model (CAPM). They say “financial markets should be viewed and analyzed using a behavioral lens.” Nathan Erickson, CFA, CAIA, and Richard Stott have a different opinion.
Identifying a client’s emotional profile and understanding how those emotions influence financial decisions can help advisers keep the client on course through difficult times.
"Everybody knows we are in a post-truth world," deception detection expert Pamela Meyer told delegates at the 70th CFA Institute Annual Conference in Philadelphia. "People will tell you anything." So what are the verbal and nonverbal clues indicating someone might be deceiving us?
Jason Voss, CFA, and C. Thomas Howard have questioned many orthodoxies of modern portfolio theory (MPT). But what do they propose to take their place? Behavioral finance.
Can robo-advisers replace human advisers? Not if the goal of the relationship is to increase clients' well-being, says Meir Statman. Why? Because that requires human interaction.
After the dust settles, virtually nothing of modern portfolio theory (MPT) will remain, asserts C. Thomas Howard and Jason Voss, CFA. The three pillars on which MPT rests have been toppled, and it is time to move on. There is an alternative way to view securities markets, their movements, and their participants: behavioral finance.
In this week's edition of Weekend Reads for Investors, Jason Voss, CFA, features articles about an unlikely encounter with George Soros, the intractability of the human mind, the environmental effects of nanotechnology, and translating our emotions into words.
Collectively, active equity delivers no value to its investors and, in fact, extracts value from them. So what can be done to launch an active equity renaissance?
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