Vol. 20, No. 4, 2022 Vasant Dhar When should we trust machine-based and human decisions in finance? In this article I answer this question by drawing on two sets of insights about decision error. I first draw on research of leading theorists on human decision-making and prediction, summarized through a set of articles and conversations… Read more
Insight
Insight: Interview with Dean Lebaron and Charley Ellis
Vol. 20, No. 3, 2022 As part of our twentieth anniversary of the JOIM, I have asked a few luminaries to share their sage thoughts in our “Insights” section. The following contribution is from Dean LeBaron who also enlisted comments from Charley Ellis in an interview which preceded our publication. My thanks to Dean and… Read more
Are We at the Inflection Point of Climate Investing?
Vol. 19, No. 4, 2021 Yu (Ben) Meng Just as the ongoing pandemic demonstrates our vulnerability to the invisible hand of the COVID-19 virus molecule, the extreme climate events are constant reminders of our vulnerability to another molecule, carbon dioxide. As a result, all walks of society are asking for solutions, especially ones that involve… Read more
Insight: Active Investing and the Efficiency of Security Markets
Vol. 19, No. 1, 2021 Russ Wermers This study investigates the impact of active investment management on the efficiency of public security markets. The scholarly literature indicates that active management contributes to market efficiency, thereby providing positive externalities for all investors, including investors in passively-managed funds. Contrary to popular interpretations of Sharpe’s (1991) “active arithmetic,”… Read more
Towards Replacing the Defined Benefit Plan: Assured Retirement Income Provided by a Liquid Investment Fund
Vol. 18, No. 4, 2020 Miguel Palacios, Hayne Leland and Sasha Karimi Traditional corporate defined benefit (DB) plans provided retirees with constant retirement income, butDB plans have now all but disappeared. While defined contribution (DC) plans now permit low-fee wealth accumulation, the conversion of wealth to predictable nominal or real income during retirement remains opaque… Read more
Introduction to the Special Issue on Machine Learning
Volume 18, No. 2, 2020 Charles Elkan View PDF… Read more
Insights: The Success Equation
Vol. 17, No. 4, 2019 Yu (Ben) Meng “Insights” features the thoughts and views of the top authorities from academia and the profession. This section offers unique perspectives from the leading minds in investment management… Read more
Insights – Complete and Incomplete FinTech Platforms
Vol. 16, No. 2, 2018 Vasant Dhar and Roger M. Stein A major consequence of the Internet era is the emergence of complex “platforms” that combine technology and process in new ways that often disrupt existing industry structures and blur industry boundaries. These platforms allow easy participation that often strengthens and extends network effects, while… Read more
Insights – Automated Investment Services
Volume 15, No. 1, 2017 Burton G. Malkiel Fully automated investment services provide automated investment management. Selected portfolios are low-cost and are rebalanced, tax managed and optimized, consistent with an investor’s goals and risk tolerance. Everything, including deposits, withdrawals, transfers, and reporting, is handled electronically. The substantial advantages made available by technology are enumerated. … Read more
The Road Not Taken
Volume 14, Number 4, 2016 Craig French… Read more