Dr. Tom Howard - The Role of Behavioral Finance in Modern Asset Management: A Comprehensive Guide
Standard Deviations with Dr. Daniel Crosby
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Behavioral Barometers Are Predicting Returns Today
Dr. Tom: I suggest a very similar approach in the behavioral investor. It's sort of playing the cards you've been dealt rather than trying to get out of crystal ball. We have 10 strategies and how those strategies rank relative, short-term versus their long-term turns out to be predictive of what the market is right now. So for example, if investors are rewarding future growth at the top and risk at the bottom,. historically the difference between that is about 6%. Future growth managers outperform risk managers by about 6%. And so that's essentially the mindset of the market right now.
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