6 results found

Since the 1980s, the efficient markets hypothesis has come under attack. Market anomalies were initially attributed to the actions of noise traders, who were believed to hold irrational beliefs and standard preferences. There was an expectation that such actors would lose their wealth over the long run via arbitrage, albeit that the effectiveness of arbitrageurs was restricted by various risks and costs. In the 1990s, psychologists identified additional limits to arbitrage which are tied to human nature. This workshop will explore these additional limits, namely: bounded rationality; the need for well-being; and, self-control problems.

Classical economists often incorporated human behaviour into their thinking. But in the 1960s and 1970s, homo economicus - the great rational agent of economic theory - was born. It was not until the 1990s that the link between human behaviour and economics began to be re-established.

There is scientific consensus that five major personality traits explain much of the behavioural differences between individuals - linking to financial outcomes, and preferences for advice.

Herman Brodie | 0.50 CE

The Big Five personality traits offer insights into the behavioural headwinds (or tailwinds) clients might encounter in achieving their financial goals, and the most effective way of dispensing advice to them.

Herman Brodie | 1.00 CE

“Nobody cares how much you know, until they know how much you care,” cautioned Theodore Roosevelt. This is especially true when risk is involved.

Herman Brodie | 0.25 CE

Trust – the belief that those to whom we are vulnerable are both willing and able to act in our interests – is the no.1 factor in the decision to select and retain an asset manager.

Herman Brodie | 1.00 CE