Last week, Japanese Prime Minister Shinzo Abe called a snap election trying to capitalise on increased public support over the summer, as the North Korea issues intensified. If the election result was to grant him a larger majority, it will enable him more room to proceed with his economic plan.… Read the article
Equity markets generally delivered strong returns
The MSCI All Country World delivered 5.1% in Q3, with most major markets providing positive returns:
Brazil was a notable standout on the positive side, in part reflecting an unwinding of the episode in Q2, which we have previously discussed.… Read the article
One thing that behavioural finance teaches us is that it’s often only after we have already made a decision that we seek to rationalise it.
Moreover, when the issue is an emotive one, tied up with how we view ourselves, our group identities, and… Read the article
Clients are rightly sceptical when we talk about applying behavioural finance to analysing market behaviour. Behavioural finance seems very “woolly” at the best of times and most of the well-known literature focuses on the decisions of individuals, not how this applies to the markets as a whole.
… Read the article
As if the stellar returns of bitcoin this year weren’t enough, the cryptocurrency gained more attention last night as JP Morgan CEO Jamie Dimon called it a ‘fraud’ that will eventually blow up. In this post, which originally featured on Eric Lonergan’s Philosophy of… Read the article
With Korean missile launches, Trump’s tweets, Hurricane Harvey, NAFTA negotiations and Brexit battles, journalists have plenty to keep themselves busy.
Of course, some of today’s headline-grabbing events might bring profound and unexpected change with lasting impact on global financial markets. But then again, they may not: devastating local events such… Read the article
Each year at Jackson Hole policy makers and economists around the world meet to discuss the issues of the day. Attention on policy makers has intensified to extremes since the financial crisis and it is unsurprisingly Janet Yellen and Mario Draghi who grabbed the headlines from the… Read the article
Last month apparently represented the twentieth anniversary of the start of the Asian crisis, and five years since Draghi’s ‘whatever it takes’ speech. This week apparently marks the ten-year anniversary of the financial crisis.
These events make great ‘hooks’ for content in the press, blogs,… Read the article
Behavioural Finance Investment Industry
Much has been made recently of the struggles faced by ‘macro’ managers in recent years, particularly among hedge funds. The last five years have seen relatively low returns to these strategies both in an absolute sense, but most notably relative to global equity markets.
The perceptions of poor performance have… Read the article