Insights from Omar Aguilar

Chief Investment Officer
Equities and Multi-Asset Strategies

Article Archives

The normalcy bias: A break from reality
May 2019

If your clients have occasionally seemed disconnected from market realities this year, the normalcy bias may be at work. Read our behavioral finance insights to learn more about this bias and its generational effects.

The winner’s curse: The overpayment principle
Fall 2018 

Is the winner's curse preying on your clients? Are Baby Boomers or Millennials more at risk, and why? Our latest behavioral finance insights tackles these questions, providing actionable guidance for advisors.

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.

Insights from Omar Aguilar - Article archive
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