behavioural biases

Permabears gain standing from scary stories, but the real cost is carried by those who stay out of markets and miss long‑term gains.

No free lunches in investing... Can your own behavioural risks inhibit you from being a successful factor investor?

In financial markets, a peculiar paradox exists - inefficiency abounds, yet most active managers fail to outperform long-term. What behavioural short-comings of...

Backed by two decades of experience in quantitative investing, SSGA's Bruce Apted shares how investors can overcome their emotions.

Since the early days of behavioural economics (born in the late 1960’s), much has been made of the evolution of our understanding of investor behaviour. While once it...

Share prices sometimes follow a narrative and other times the reverse is true, as recent examples show

There are now 180 known cognitive biases, many of which impact our investing approach. One is all about confidence.

In a period of significant selloffs across risk assets, many investors take comfort that Aussie equities have held up better than nearly any other developed market...

For the runners, cyclists or outdoor sportspeople within our readership, a handful of circumstances will almost always result in a proverbial groan: headwinds. That...

"Experts" are mostly overconfident, and overconfidence retards investment returns. Today's fervour portends losses and disillusion.

Most of us read about behavioural biases and acknowledge they exist, yet there is no evidence the financial community is any better at dealing with them. Understanding...

In a previous wire, we asked the question: "Where is iron-ore headed from here?". We suggested a clearing price around $100 USD/ton. The futures price hit that level...

In my previous wire, I showed that overconsumption of news misinforms investors and wastes their time. But that’s not all: in this article, I cite evidence that...

Shareholders and others sometimes ask: “where do you get the information you need to invest?” In response, I say something like: “every business day I scan headlines...

It is something we’ve all been told before. Successful long-term investors survive short-term volatility by sticking to investment principles that have withstood the...

In a recent two-part series, I showed that successful investment isn’t a matter of raw brainpower; instead, it’s primarily the result of refined character – and...

We can think of any investment decision as the coming together of an object, data and analysis, with a subject, the decision maker. This decision maker may be a person...

When Walter Schloss founded the funds management firm that bore his name in 1955, markets were a very different place. Schloss harnessed the power of Ben Graham's...

Making sensible investment decisions is difficult. We are subject to a range of behavioural biases. We have to cope with incessant noise around financial markets. We...

Behavioural economics moved into the mainstream when psychologist Daniel Kahneman was awarded the Nobel Prize for economics. Ironically, his work was critical of...