Wednesday, February 25, 2015

MoneyScience News

MoneyScience News


Blog Post: WealthandCapitalMarketsBlog: Will Top Down Fidelity Embrace Bottom Up Investing?

Posted: 24 Feb 2015 06:37 AM PST

In my last post, I commented on the leadership transition at Fidelity and the firm’s tie-ups with firms like Betterment, LearnVest and eMoney.read more...

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Blog Post: TheFinancialServicesClub: Data is the bank's battleground - are you fit to fight?

Posted: 24 Feb 2015 04:17 AM PST

I’ve developed a whole new presentation on the ValueWeb, which I’ll share at some point soon, and tried it out today for the first time.  It was interesting to gauge the audience reaction, which was overwhelmingly positive.  We then had a panel discussion at the end of the session, and one of the panellists summarised my phases of the internet as follows: “the first three...

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Blog Post: emotionalfinance: 'The heart has its reasonsâ: emotions and cognition in the world of finance

Posted: 24 Feb 2015 03:45 AM PST



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Published / Preprint: The Effect of Providing Peer Information on Retirement Savings Decisions

Posted: 24 Feb 2015 01:56 AM PST

Using a field experiment in a 401(k) plan, we measure the effect of disseminating information about peer behavior on savings. Low-saving employees received simplified plan enrollment or contribution increase forms. A randomized subset of forms stated the fraction of age-matched coworkers participating in the plan or age-matched participants contributing at least 6% of pay to the plan. We document...

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Published / Preprint: Rewarding Trading Skills Without Inducing Gambling

Posted: 24 Feb 2015 12:25 AM PST

This paper develops a model of active asset management in which fund managers may forgo alpha-generating strategies, preferring instead to make negative-alpha trades that enable them to temporarily manipulate investors' perceptions of their skills. We show that such trades are optimally generated by taking on hidden tail risk, and are more likely to occur when fund managers are impatient and when...

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