Are Computers Human 5

There is one mistake that costs investors billions of dollars every year and yet investors continue to repeat it. This mistake happens primarily because investors are emotional and overconfident. Being emotional is the main reason for so called “timing” mistakes. The market research firm Dalbar Inc. calculated, for the period between 1994-2013, that due to […]

Are you familiar with the famous Marshmallow Test performed in the 1960s by psychologist Walter Mischel? He designed a simple experiment at Stanford’s Bing Nursery School to test the self-control of preschoolers. He put them into a room (filming it with hidden cameras) and told them they could either eat one Marshmallow immediately, or if […]

Passive vs. Factor vs. Active meetinvest

Most people who don’t earn their money in the professional investment world are unaware that there is a heated debate over which investment approach is better: active or passive? What is active investing? It might best be described as an attempt to apply human intelligence to find “good deals” in the financial markets. Active managers […]