Published on Proactive Advisor Magazine March 10, 2021
Bear markets trigger powerful emotions for many investors. Awareness of investor biases—which are compounded in bear markets—can help both advisors and their clients avoid making behavioral mistakes in turbulent times.
A growing trend within the investment industry is the direct application of behavioral finance to portfolio management. This represents a new direction, building on the industry’s current emphasis on how investors and advisors can avoid the emotional biases that destroy wealth. Its focus is on using behavioral factors as the basis for constructing an investment strategy, while at the same time avoiding the cognitive errors made by fund managers.
Published on Proactive Advisor Magazine May 6, 2020
Applying behavioral finance concepts to fund manager behaviors has proven helpful in selecting top-performing equity funds.