Investment Decision Making
Good enough is no longer an option for active investment management firms.
Once we’re aware of how incorrect framing can sabotage performance, how can we ensure that we are framing decisions properly?
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.
Isn’t it worthwhile to understand that while a manager’s monthly excess returns may be volatile, their excess returns across five-year time periods are relatively smooth?
"Integrating ESG certainly does not harm and, in fact, is additive to value generation," says Andrew Parry of Hermes Investment Management.
"Regret is probably the greatest enemy of good decision making in personal finance," Daniel Kahneman says.
Artificial intelligence (AI) may be among the latest buzzwords in finance, but applying it to investment decision making will disrupt the industry and benefit those investors who harness its power, says Dan Philps, CFA.
As finance gurus forecast a market that's variously overvalued, undervalued, ready to plunge off the cliff, or blast off to new heights, remember to tune out the noise and stay invested for the long run, says Mark Armbruster, CFA.
The introduction of the Skill Ratio by Daniel Blais, CFA; Brodie Gay's examination of how inflation is underreported; and an exploration by Ziad Abou Gergi, CFA, of the manager-selection process, are among the top posts from March.
What’s the road map for artificial intelligence (AI) in investment management? Larry Cao, CFA, shares his perspective in the final installment of his three-part series exploring AI's impact on investment management.