Junk Science from the CFA Institute

The CFA Institute offers:

Your ability to tolerate risk should be determined by your personal financial circumstances, your investment time horizon, and the size of an investment in the context of your portfolio. Frame dependence is a concept that refers to the tendency to change risk tolerance based on the direction of the market. For example, your willingness to tolerate risk may fall when markets are falling. Alternatively, your risk tolerance may rise when markets are rising. This often causes the investor to buy high and sell low.

Who still pretends markets are efficient, imagines buy and hold as a panacea, believes index investing is Shangri-La and that The Fed has your best interest at heart? Don’t look behind the curtain. No need to ever worry about anything…

Tagged with: , , , , ,
Posted in Holy Grails
One comment on “Junk Science from the CFA Institute
  1. Jim Rohrbach says:

    If you worry about your investments, consider that you might be doing something wrong. I sleep very well.
    Jim Rohrbach,RIA

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Michael Covel Books

Underground Insights

Subscribe now to my free email newsletter and get the latest blog posts, podcast episodes and special offers delivered to your in box:
Click Here.

Pricing for trend following systems, risk management, trading psychology and black swan strategies. Absolute return systems and education for brand new traders and established pros. Thousands of clients across 70+ countries. Client testimonials.

The Trend Following™ podcast with Michael Covel. Listen now on iTunes and Android. Top authors and traders plus alternative commentary. 1M+ listens across 160+ countries & territories.

Free Video

One small town guy's trend following experience sent to your home. Get your free video delivered immediately and be inspired.

Trend Trading