Are asset markets “pausing for breath”? (with a note on the relevance of “hard data” versus “soft data”)

Behavioural Finance Economics

Are asset markets “pausing for breath”? Since the relatively dramatic moves in many markets in the second half of last year, a lot of commentary suggests that things feel less eventful so far in 2017.

There are a number of biases evident in this view. Such commentary is hugely myopic… Read the article

Nickel and Diming about a quarter per cent: Why is the Fed talking in terms of number of rate increases and not levels, and should we care?

Behavioural Finance Economics

Wednesday’s triggering of Article 50 was a non-event in financial markets; an event more symbolic than anything else. Meanwhile in the US, two Fed officials were discussing their views on what could happen to US interest rates.

The Boston Reserve President said that four rate “hikes”… Read the article

“Opinion masquerading as knowledge”: Investors should beware emotional reactions to Trump

Behavioural Finance Markets

The weekend’s news has again illustrated the strong emotional responses produced by politics today and by Donald Trump in particular. It is no coincidence then that the current prevailing sentiment among investors is that returns and price behavior in the coming year will be determined by the actions of President… Read the article