Article Archives

The endowment effect: Value is relative
Summer 2018

Value is more relative than economists once believed. Classical economic theory holds that market participants are rational decision makers who unfailingly attempt to maximize their returns. Embracing this maxim leads to expectations that developed equity markets, as a collective extension of individual market participants, are therefore efficient and rational. However, global equity markets often fall considerably short of such expectations, defying economic theory and reflecting the fact that investors are often predictably irrational, instead.

The availability bias
Spring 2018

Behavioral finance suggests that your clients frequently employ mental heuristics when making investment decisions. However, as the availability bias demonstrates, these shortcuts often come at a cost.

The comforts of home
Winter 2017

With the U.S. bull market seemingly unstoppable in 2017, a client’s desire to invest primarily in domestic equities may seem intuitively sensible.

Accelerating toward mean reversion
Summer 2017

Mean reversion seems increasingly possible for stocks over the short-term amid stretched valuations and the momentum-driven environment.

Anchored on campaign promises
Spring 2017

Global equity markets rallied during the first quarter of 2017, as the current U.S. bull market celebrated its eighth birthday...

Confident to a fault
January 2017

Do investors always behave in rational ways that best serve their long-term interests? The dot-com bubble, the Great Recession, and the 2015 stock market stampede in China argue otherwise, illustrating the importance...

Insights from Omar Aguilar - Article archive
Welcome to Aguilar’s Blog Archives. Read the all articles from Omar Aguilar.