New research in CFA Institute FAJ, by Nobel Laureate, William Sharpe. Fund management expenses really matter. Low cost funds accumulate 20% more in the long run. FAJ Abstract; The Arithmetic of Investment Expenses. Sharpe also on retirement savings and magical thinking.
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Tag Archives: Magical thinking
Magical Thinking and Emotional Biases
May 17, 2012 
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Despite the widespread mistrust of politics, great faith continues to be placed in our leaders. Investors are again focusing on a series of votes in Europe, dissecting daily opinion polls and every utterance from politicians. The hope is that democracy will provide the solution to decades of bad economic management – all that is needed, […]
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November 3, 2010 0 Comments
Strong stockmarkets and quantitative easing now seem inextricably interlinked. While they move together simultaneously, little further analysis seems needed. Indeed, mere rumours hinting at more money printing are enough to trigger another buying flurry. And, while shares are going up, there is little motive for investors to question the logic of QE, or the risks. […]
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Behavioural Edge 
Why has the Referendum debate been misunderstood?
What will the Scottish Referendum leave in its wake? A re-energised or a divided Scotland? And will the threat of divorce leave the UK scarred? Many outside observers have misunderstood the debate, triggering misplaced advice. The divisions are deep, and unlikely to be resolved in a single vote. A yes vote may not just hit […]
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