ICF Board member Eddie Tam bets on the future of China's stock market.
As we know, the stock market can be fickle in the short term. There is no single investment strategy that offers a fool-proof method for earning returns and/or mitigating risk. Further, jumping from one approach to another while trying to predict what will happen next can lead to losses in the long run.
Review: William Goetzmann, 'Money Changes Everything'
ICF Board Member Ranji Nagaswami named CEO of OCIO Hirtle Callaghan
In “Crash Beliefs from Investor Surveys,” William N. Goetzmann, Dasol Kim and Robert J. Shiller provide direct evidence using surveys that capture investor beliefs regarding stock market crashes between 1989 and 2015. The researchers find that investors routinely overestimate the likelihood of severe crashes
China should focus more on consumption than on manufacture in order to pump economic growth, said Chen Zhiwu, a Professor of Finance at Yale School of Management.
Research from behavioral economists shows we are prone to overvalue recent returns more than the longer term — to our deep financial detriment. Yale University’s Robert Shiller and William Goetzmann, together with with Dasol Kim at Case Western Reserve, studied investor expectations of market performance and found that there’s a strong tendency to erroneously anticipate future returns based on recent trading history.
The shock from Brexit is pummeling investors on both sides of the Atlantic with huge losses.
When Pablo Picasso’s “Les Femmes d’Alger (Version O)” sold at Christie’s in New York for $179 million dollars in May 2015, it was only the 36th time in the past 315 years that a world auction record had been set, and the sale raised questions well beyond the art world. How could a single painting be worth so much? Why is art so important to wealthy households? What economic and social factors could lead to enshrining Picasso’s colourful near-abstract portrait as the most valuable picture in the history of the modern world?
Investor fears are being exacerbated by reports of poor market returns, according to a recent study. The pessimism is almost certainly hurting their investments. Simon Constable explains.