Not exact matches
A lack
of fear leads to «
irrational exuberance,» when
investors pay no attention to the fundamentals
of their investment decisions.
By one closely watched measure
of valuation, Alan Greenspan's
irrational exuberance warning should be keeping
investors near the sell button.
History shows that
investors are frequently
irrational, but if there were a lot
of value per share that went wanting, you can comfortably bet that share prices would have gone up.
As such, behavioral funds seek to take advantage
of pricing anomalies that may exist in the continuum between rational
investors and
irrational investors by tracking their sentiment and decision - making.
Is this a case
of irrational exuberance gripping
investors?
The hard form
of behavioral finance theory suggests people are deeply
irrational, in an economic sense, and government regulation is required to moderate
irrational investor activity.
Other proponents
of smart beta cite the
irrational behavior
of investors as the main support for factor - based investing.
«For as long as I can remember, veteran businessmen and
investors - I among them - have been warning about the dangers
of irrational stock speculation and hammering away at the theme that stock certificates are deeds
of ownership and not betting slips.
Another behavior is anchoring, where
investors are slow to react to fundamental changes in economic, corporate or market developments because
of an
irrational attachment to a perceived value, even in the face
of changing information.
Probable Outcomes continues the Crestmont Research tradition
of extensive full - color charts and graphs that enable
investors and advisors to differentiate between
irrational hope and a rational view
of the stock market.
He is not trying to be smarter than his fellow
investors but simply trying to be less
irrational than the mass
of speculators who insist on buying after the market advances and selling after it goes down.
Mr. Deysher would prefer to give his
investors the opportunity to earn prudent returns, sleep well at night and, eventually, profit richly from the
irrational behavior
of the mass
of investors.
Bull markets — periods in which prices as a group tend to rise — and bear markets — periods
of declining prices — can lead
investors to make
irrational choices.
Thus, the
investors must accept the challenge
of getting used to diverse trading conditions, as well as learning to avoid rapid
irrational investments.
One
of the biggest ways we can improve as
investors is to gain control over some
of our
irrational biases.
NEW YORK (Reuters)- The heavy pace
of private equity deals being brokered on Wall Street is not a bubble being driven by
irrational investors, but rather the result
of an arbitrage opportunity in the market, said Citigroup's chief U.S. equity strategist.
The difference between the
irrational investor and the shark on the beach is the shorter length
of time the
investor has had to adapt to the financial environment, and the much faster speed with which the environment is changing.
RiverNorth Opportunities (RIV): This is the closed - end fund for serious
investors who know there's a lot
of money to be made in the
irrational pricing
of closed - end funds, but who don't have the time or expertise to construct such a portfolio on their own.
Some believe the market crash was caused by an
irrational behavior on the part
of investors.
The lesson is that
investors should assess the real performance
of the companies they invest in, and not get carried away by the often
irrational prices that occur in the stock market.
The market can stay
irrational for long periods
of time, and
investors have shown
irrational exuberance (as Shiller puts it) many times before, and this can repeat itself over and over again.
Multiply this potential for valuation bias across all
investors, and inevitably you tend to end up with a pretty inefficient /
irrational market... at least in terms
of individual stocks & sectors.
Because
of informational lags, or
irrational exuberance on the part
of speculative
investors, a company's stock price can become detached from its true value.
Certified financial planner Paul Philip, president
of Don Mills, Ont. - based Financial Wealth Builders Inc., believes the biggest mistake
investors make is being «predictably
irrational.»
It's a silly (
irrational;)-RRB- goal for the vast majority
of investors.
If you're really a long - term
investor (10 + years), the historical ERP has been so high and current bond yields are so low that it takes a rather
irrational level
of risk aversion to own bonds, unless you think the ERP is wrong and / or there's a substantial risk
of deflation.
Ethereum News Update Earlier this week — as
investors were in the thick
of the holiday rush — South Korean authorities debated how to curb the
irrational exuberance
of cryptocurrencies.