Our cognitive abilities like memory, perception, self-reflection etc. are highly evolved, but maladapted to the challenges of modern life. In this article the most common flaws of memory are described and it is shown how these flaws of memory might impact our recollection of financial events and...

If risk aversion and willingness to take on risk are driven by emotions and we as humans are bad at correctly identifying them, the finance profession has a serious challenge at hand—how to reliably identify the individual risk profile of a retail investor or high-net-worth individual. In this...

[The Research Foundation Review 2018 summarizes the offerings from the CFA Institute Research Foundation over the past year—books, literature reviews, workshop presentations, and other relevant material

We update our annual analysis of expected returns for 38 equity markets around the world. For the first time since we started our series in 2012, we find most emerging markets now exhibit higher expected returns than developed markets. In particular the expected returns for the core European...

Does capitalism still work? In the newspapers and on TV, capitalism is being criticised everywhere as the source of rising inequality and a system that no longer works for the middle class. At the heart of the tension between capitalism and the “public good” lies the question of whether a...

Chapter 9 of Geo-Economics: The Interplay between Geopolitics, Economics, and Investments focuses on one of the most pressing global challenges for politics and humankind alike: climate change. Climate change is already triggering more intense and more frequent extreme weather events—cyclones,...

Chapter 5 of Geo-Economics: The Interplay between Geopolitics, Economics, and Investments opens the second part of this book, in which I focus on geopolitical trends that might become important in the coming decade. To set the scene, Chapter 5 introduces my 10 rules of forecasting. Developed...

Although the negative effects of geopolitical events get more attention, geopolitical events also create positive investment opportunities. From globalization to free trade, international cooperation has complex implications for investing