The jaws of a golden opportunity

The jaws of a golden opportunity

It might not be obvious but the axiom ‘a bird in the hand is worth two in the bush’ is a wonderful demonstration of two human behavioural biases: the first is time preference – a desire to receive gratification now rather than later; the second is prospect theory –...
The rise and rise of passive investing

The rise and rise of passive investing

Soon, for the first time ever, more money will be managed passively than actively in the US. The rest of the world is not far behind. But what could this mean? A cynic might describe passive investing as ‘unthinking’ while adherents might prefer ‘rules-based’ or...
Why traditional safe havens might not work

Why traditional safe havens might not work

“The only free lunch in investing” is how Professor Harry Markowitz, Nobel Prize winner and creator of modern portfolio theory, described diversification back in 1952. The idea of effective diversification is based around the assumption that some assets will be...