When evaluating investment performance, we generally acknowledge a fundamental distinction between skill and luck. This research paper looks at the concept of “moral luck” and finds that the outcome of an investment recommendation may shape others’ evaluations of both the skill and the morality of the investment adviser.

Rob Hamshar | 1.50 CE

The idea that individuals are more sensitive to losses than to equivalent gains is critical in investment decision-making. Two recent papers highlight that loss aversion/tolerance is a more nuanced phenomenon than is commonly recognised.

Rob Hamshar | 1.50 CE

Three articles provide us with insights into the impact that the growth in passive management has had on the performance of active managers; the risks taken by active managers and the general efficiency of markets; and, the behaviour of markets.

Ron Bird | 1 comment | 2.00 CE

The future state of the economy and markets depends, in part, on what people expect it will be. Understanding people's expectations, and how and why they form and revise them, has important implications for portfolio construction practice.

Rob Hamshar | 1.50 CE

This paper provides a comprehensive review of the psychology of attention and its relationship to key economic concepts (utility, risk-taking, social preferences, and learning), and the emerging role of AI in the modern economy.

Rob Hamshar | 1.50 CE