aiCIO - A Neurology Lesson for Money Managers

Chief Investment Officer-CIO - A Neurology Lesson for Money Managers:

Nice short list (8 points) on how neuroeconomics effects money managers from Paul Zak.


"The crossover applications between neurology and economics don’t end there. In fact, an entire discipline has sprung up in their midst: neuroeconomics. Two leaders in this field have teamed up and crafted a list of the eight crucial

Why You Shouldn't Think Of The S&P 500 As A Diversified Basket Of 500 Companies - Seeking Alpha

Why You Shouldn't Think Of The S&P 500 As A Diversified Basket Of 500 Companies - Seeking Alpha:
The S&P, like most indexes, is a market-weighted index.  So the larger the stock, the more the influence.  This is demonstrated in this article from Seeking Alpha:

Two look-ins:

"...the top five holdings of the Vanguard S&P 500 ETF (VOO). They are Apple (AAPL), Exxon (XOM), General Electric (GE),

Hedge funds disappoint -- again - CBS News

Logo of CBS News (Photo credit: Wikipedia)

Hedge funds disappoint -- again - CBS News:

While this says nothing about the hedge aspects (may be a good low correlation investment), it does suggest that at Hedge funds are not the be all and end all that some suggest.


"Over the past five years, the S&P 500 returned 1.7 percent per year, producing a cumulative return of 8.6 percent, while the

Which Volatility Hedged ETF Should You Consider? - Zacks.com

Which Volatility Hedged ETF Should You Consider? - Zacks.com

A must for SIMM class where we just mentioned this in class:


"The tail risk hedge takes care of extreme market volatility which can potentially result in a crash. Therefore these events are considered to be outliers which normally do not fall within three standard deviations of the average of the implied volatility.

The

Are women better investors?

Female hedge fund managers outperformed male managers in 2012

"Meredith Jones, director at Rothstein Kass and the author of the
report, believes there are two primary factors at play in the
exceptional performance of women in alternative investments.

Women tend to be more risk-averse than men. “Women may be better
equipped to position a portfolio to handle market volatility which we