It’s How Big, Not How Often, That Counts
PsyFi Search Wednesday 9 November 2011 It’s How Big, Not How Often, That Counts Soros’ Batting Record George Soros, one of the greatest investors of the last fifty years, has a fairly poor batting record when you look at the total number of strikeouts he’s had over his career. By his own account he’s been […]
In Markets Bad Stuff Happens – Frequently
PsyFi Search Saturday, 17 April 2010 In Markets Bad Stuff Happens – Frequently Numbers and StoriesWe’ve seen before that investors are generally attracted to a good story and tend to shy away from the hard problems associated with analysing numbers. Worse, even if people do look at the numbers they tend to be swamped by […]
Investor Decisions – Experience is Not Enough
PsyFi Search Wednesday 24 March 2010 Investor Decisions – Experience is Not Enough Economic ParadoxesAt the heart of Prospect Theory, the seminal approach behind behavioural finance, lies a puzzling paradox. Although the theory argues that people overweight the chances of unlikely events occurring – so, of instance, we worry much more than we ought to […]
Pulling Up The Intellectual Property Ladder
PsyFi Search Wednesday, 20 January 2010 Pulling Up The Intellectual Property Ladder Tragedy of the Anti-CommonsHuman ingenuity has been behind much of the economic boom that the world’s undergone since the late eighteenth century. Sparked by the rise of reason in the form of deepening scientific knowledge and backed by increasingly large flows of capital […]
The Special Theory of Behavioural Finance
PsyFi Search Thursday 20 August 2009 The Special Theory of Behavioural Finance What’s Wrong With Behavioural Finance?We’ve seen time and again that the standard model of rational financial economics is next to useless at predicting anything at all useful about stockmarkets. Yet despite this the model is retained and used in many forms, often disguised […]