From Aristotle to active investment management

From Aristotle to active investment management

Over 2,500 years ago, in what may have been one of the earliest examples of behavioral finance theory, ancient Greek philosopher Aristotle is reported to have said the following regarding the achievement of success: “First, have a definite, clear practical ideal; a...
2020: A master class in behavioral finance

2020: A master class in behavioral finance

This year has been somewhat like a master class, or real-time laboratory, in illustrating some classic concepts of behavioral finance in a compressed time frame. Think about it. Investor emotions and behavior have been on a roller-coaster ride throughout 2020—unlike...
Why risk management matters

Why risk management matters

This column has explored the topic of risk management in some detail over the years, addressing several questions: Are the retail investor and financial adviser underserved by the buy-and-hold philosophy? What is the potential role of dynamic risk-managed strategies...
The willing suspension of disbelief

The willing suspension of disbelief

Several decades ago (far too many) I was a new MBA graduate and had entered the management trainee program at what is now one of the world’s largest fully integrated communications firms. The program was comprehensive and included gaining exposure to several...
Getting a handle on volatility

Getting a handle on volatility

I was listening to one of my favorite radio broadcasts last Friday morning (March 6), about 45 minutes before the market open.

Tom Keene, of Bloomberg Surveillance, was reviewing various pre-market levels.