Friday, 31 October 2014

Credence Independent Advisors News: Global Equity Markets At Their Best In August, After Five Months

The trading for the month of August ended on Friday the 29th, witnessing a rise in the global equity markets, reaching their peak in five months, since February. The rise was attributed to the strong U.S. data and German bond yields rising up from their record lows, amid expectations that the European Central Bank (ECB) would ease monetary policy next week, fading away. The S&P 500 index; which is the U.S. benchmark, ended on Friday above...

Monday, 27 October 2014

Credence Independent Advisors News: Key Considerations of Behavioral Finance

The central issue in behavioral finance is explaining why market participants make systematic errors contrary to the assumption of rational market participants. Such errors affect prices and returns, creating market inefficiencies. It also investigates how other participants take advantage (arbitrage) of such market inefficiencies. Some of the following traits know as heuristics follow. Psychology concepts that affect the way you manage...