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The following posts are related to behavioral finance. Scroll down to see more articles.

One way to beat the market

A dynamic, risk-managed investing approach can help minimize the downside in bear markets. That goes a long way toward ‘beating the market’ through full market cycles. Reading Dr. Edward Thorp’s 1967 book “Beat the Market” in the summer of 1968 changed...

Retirees’ oncoming financial tsunami

It is different this time: The impact of demographics on sequence-of-returns issues. It isn’t a question of if the next bear market will occur, but when. But this one will be different. It has the potential to be a financial superstorm. Like all major...

The behavioral side of goals-based investing

As the advisory profession moves further into goals-based wealth management, advisors should prepare themselves for more frequent forays into behavioral psychology and human social behavior. For nearly half a century, financial-planning and...

The coming transformation of technical analysis

While technical analysis has its roots in practices thousands of years old, advances in technology, behavioral psychology, and artificial intelligence will lead the next transformation of the discipline. Origins of technical analysis Technical analysis...

Are index funds the next market ‘bubble’?

While bear markets are inevitable, will their impact be exacerbated by the growth of passive index funds—and the accompanying “madness of crowds”? One of the fun aspects of having children is re-exposure to some great kid-friendly literature. In a...

Explaining the (mis)behavior of markets

Does fractal mathematics offer a better way to understand market risk? The traditional test of understanding how something works is to take it apart and then rebuild it. If the clock still keeps time afterward, there is a good likelihood that the...

Risky business

How can advisors build a more meaningful investor behavioral profile? The long-lasting effects of the Great Recession It is hardly news that many investors remain permanently scarred by the credit crisis of 2007 to 2009. Many research studies since have...