As we have mentioned repeatedly on this blog, the change in market mood since the pivotal moment in the middle of 2016 has been staggering.
Category: Behavioural Finance
We are told that markets are ignoring news flow today in the hunt for short term gains. In part this seems to be an issue of salience. The news which ‘feels’ more important is that which grabs the headlines: Korean missile tests, the unwinding (or not) of QE,… Read the article
New York, New York…
Imagine the excitement. In a moment of spontaneity, you’ve decided to treat yourself and your other half to a last minute trip to New York. You’ve selected the hotel, managed to get reservations at some highly recommended restaurants and even tickets for a Broadway show, which… Read the article
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
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
US ten year Treasuries have delivered a zero real return to investors over the last five years, while the US equity market has increased by 87%.
This should not be a surprise. It makes sense for investors to pay up for lower volatility (even if this relationship does… Read the article
The apparent lack of volatility in markets may have left some investors twiddling their thumbs- the passive acquisition of risk premia can sometimes be a dull world after all. To help you through until the next market episode, here are seven reading suggestions from M&G’s episode… Read the article
As a completely agnostic investor in a risk-free government bond, a sensible return expectation might be the yield on that bond.
While markets may have seemed uneventful of late, there has been a flurry of academic activity that gets to the very heart of whether it is possible to beat the market. Though dull and esoteric on the surface three papers and a new book, all released in the last three… Read the article