Naïve Diversification
Naive diversification is best described as a rough and, more or less, instinctive common sense division of a portfolio, without bothering with sophisticated mathematical models.
Naive diversification is best described as a rough and, more or less, instinctive common sense division of a portfolio, without bothering with sophisticated mathematical models.
The peak–end rule is a psychological heuristic in which people judge experiences largely based on how they were at their peak (i.e., their most intense point) and at their end, rather than based on the total sum or average of every moment of the experience.
A theory that people value gains and losses differently and, as such, will base decisions on perceived gains rather than perceived losses. Thus, if a person were given two equal choices, one expressed in terms of possible gains and the other in possible losses, people would choose the former. Also known as loss aversion.
Built on behavioral finance insights, the Ulysses Strategy requires clients to pre-commit to a rational investment plan. The phrase “Ulysses contract” derives from a strategy that Ulysses adopted on his journey home from the Trojan wars, which took him and his ship’s crew close to the Sirenusian islands. The islands were famous for being home …