Congratulations to one of our advisers Professor Samuel Hartzmark from the University of Chicago Booth School of Business for winning the 2019 Exeter Prize for the best paper published in the previous calendar year in a peer-reviewed journal in the fields of Experimental Economics, Behavioural Economics and Decision Theory.
Press reports on contributors to market volatility have long emphasized news about GDP, inflation, and other economic aggregates, but news about policy has become increasingly important.
Investors increase the share of equities in their portfolios by about 0.7 percentage points when the return that they expect to earn on stocks rises by 1 percentage point.
Given the inherent conflict of interests in the financial adviser industry, since there seems to be a regulatory gap in Asia, the burden falls upon investors to understand the investment management industry. Unsurprisingly, most investors prefer to use simpler assets as store of wealth, such as bank deposits, certificates of deposit, or even real estate.
Investors should be aware of who their regulators are and whether the regulators are well-equipped to be an effective deterrence against potential misconduct by their financial advisers. Investors in areas with a weaker or financially constrained regulator will need to be more active in monitoring their own investment advisers and do not take the fiduciary duty for granted.