The Misguided Beliefs of Financial Advisors

Apparently financial advisers give shit advice because that’s the advice they give themselves….. Abstract A common view of retail finance is that conflicts of interest contribute to the high cost of advice. Using detailed data on financial advisors and their clients, however, we show that most advisors invest personally just as they advise their clients.…

Details

Another Day Another Strategy

One of the difficulties that new investors face is the extraordinary range of investing strategies that are presented to them. These strategies are often presented as gospel from what new traders would perceive to be sources of authority. One of the oldest chestnuts that I absolutely abhor is the notion of dollar cost averaging which…

Details

How to beat the bookies by turning their odds against them

Mathematicians had already developed bookie-beating models that attempt to predict sporting outcomes, but they are hard to devise and don’t perform consistently. So Lisandro Kaunitz at the University of Tokyo and his colleagues tried a more direct approach: using the bookmakers’ odds against them. The team studied data on nearly half a million football matches…

Details