Our Ideas

TURNING ACADEMIC INSIGHT INTO INVESTMENT PERFORMANCE®

18 Aug

Behavioral Bias Bingo -- The Illusion of Control

The Illusion of ControlIn most elevators, at least in any built or installed since the early nineties, the door-close button doesn’t work. It is there mainly to make you think it works. (It does work if, say, a fireman needs to take control. But you need a key, and a fire, to do that.) Once you know this, it can be illuminating to watch people compulsively press the door-clos ...
Continue Reading
14 Aug

The Remarkable Truth about 52-Week High Stocks

Pop quiz:

A stock you own just hit a 52-week high...

Does it make you nervous?

On Wall Street, there are many highly publicized metrics that can trigger an emotional response in investors. The “52-week high” signal is a great example. It is a widely reported (e.g., Barron's, WSJ, MarketWatch) and easily noticed statistic. Stocks at 52-week h ...
Continue Reading

Follow us on Twitter!