by Jason Apollo Voss | 22 10 2012 | Best of the Blog, Blog
In the recent Research Foundation of CFA Institute publication, Fund Management: An Emotional Finance Perspective, coauthors David Tuckett and Richard J. Taffler tell a compelling story about the myriad emotional stresses confronted by both analysts and portfolio...
by Jason Apollo Voss | 04 10 2012 | Best of the Blog, Blog
In an earlier post, “Rethinking the Risk-Free Rate, Exploding a Fundamental Assumption,” I criticized the concept of the “risk-free rate of return” as both illogical and not reflective of reality. Although I acknowledged the logic of having a bedrock rate of return...
by Jason Apollo Voss | 19 09 2012 | Best of the Blog, Blog
Despite an environment in which many business and financial market commentators, as well as investors, are questioning the size and structure of incentives, there is a shocking lack of new insight about their uses and abuses. In fact, many fault incentives for...
by Jason Apollo Voss | 10 09 2012 | Best of the Blog, Blog
When it comes to explaining the equity market’s mysterious day-to-day moves, the financial media love nothing more than a convenient explanation. “Today ‘the market’ was up . . . ” or “Investors ran for the exits today . . . ” are common refrains. But what or...
by Jason Apollo Voss | 27 08 2012 | Best of the Blog, Blog
A seemingly endless battle is waged between believers in the efficient market hypothesis, such as Eugene Fama, and believers in behavioral finance, such as Daniel Kahneman. Regardless of your perspective, an analysis of the S&P 500’s history of sigma events...
by Jason Apollo Voss | 16 08 2012 | Best of the Blog, Blog
With more than 100 scholarly papers to her name, Bella DePaulo, visiting professor of psychology at the University of California, Santa Barbara, is a preeminent authority on lying and deceit behavior. In her book, The Hows and Whys of Lies, the Harvard...
