Note: This is the basis of Regret Minimization framework we have discussed from time to time...
ritholtz.com/2020/12/year-e…
ritholtz.com/2020/12/year-e…
This is the bane of existence of most stock pickers: They might be good buyers but they tend to sell either too early or too late.
ritholtz.com/2019/01/fund-m…
ritholtz.com/2019/01/fund-m…
There are endless academic studies demonstrating this.
It helps to explain the alpha that comes from Fama-French factor models or various forms of screening -- they remove the emotional selling decision from the fund manager
It helps to explain the alpha that comes from Fama-French factor models or various forms of screening -- they remove the emotional selling decision from the fund manager
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