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Mind over matter?

Episode 7: The uses and abuses of behavioural economics

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Lauren French
Deputy Head of Private Wealth
Andrew van Biljon
Research Director
Rory McIvor
Director – Markets & Communications

What do these theories say about us as decision makers? What are their shortcomings? 

Can behavioural science make us better investors? Andrew van Biljon and Lauren French offer their insights into the world of behavioural economics. 

Further reading

Gigerenzer (2018), The Bias Bias in Behavioral Economics, Review of Behavioral Economics vol 5/3-4

Kahneman and Tversky (1979), Prospect Theory: An Analysis of Decision under Risk, Econometrica vol 47/2

Miller and Sanjurjo (2018), Momentum Isn’t Magic—Vindicating the Hot Hand with the Mathematics of Streaks

Peters (2019), The ergodicity problem in economics

Raviv, (2018) The Genius Neuroscientist Who Might Hold the Key to True AI

Nanayakkara, Nimal and Weerakoon (2019) Behavioural Asset Pricing: A Review, International Journal of Economics and Financial Issues vol 9/4

Choice (2020) What Lesson Can Investors Take from Sir Isaac Newton’s Mistakes?

 

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Lauren French
Deputy Head of Private Wealth
Andrew van Biljon
Research Director
Rory McIvor
Director – Markets & Communications
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Piers Wheeler
Director – Global Institutional
Developing and executing asset management strategy for capital raising and strategic relationship management. Coverage includes EMEA, Asia and Australia. Piers joined Ruffer in 2021, having previously worked with asset management firms including Eastspring, AMP Capital and LEK as a strategic consultant. He holds a MA from the Bayes Business School and a BA (Hons) from the University of Oxford.
Annabel Paterson
Annabel Paterson
Senior Associate – Global Institutional
Joined Ruffer in 2021, having graduated with a first class honours degree in land economics from the University of Cambridge. After two years working with the UK Private Wealth team and completing her IMC and CFA Level I qualifications, she now supports Ruffer’s global business development and client servicing efforts.

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The views expressed in this podcast are not intended as an offer or solicitation for the purchase or sale of any investment or financial instrument, including interests in any of Ruffer’s funds. The information contained in the article is fact based and does not constitute investment research, investment advice or a personal recommendation, and should not be used as the basis for any investment decision. This document does not take account of any potential investor’s investment objectives, particular needs or financial situation. This document reflects Ruffer’s opinions at the date of publication only, the opinions are subject to change without notice and Ruffer shall bear no responsibility for the opinions offered. Read the full disclaimer.

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London
Ruffer LLP
80 Victoria Street
London SW1E 5JL
Paris
Ruffer S.A.
103 boulevard Haussmann
75008 Paris, France
New York
Ruffer LLC
300 Park Avenue
New York NY 10022
Edinburgh
Ruffer LLP
31 Charlotte Square
Edinburgh EH2 4ET