Omar Aguilar, Ph.D.

Behavioral Finance Insights from our CIO of Passive Equity and Multi-Asset Strategies

Omar Aguilar
Behavioral finance

Unprecedented and uncertain are two conditions that not only describe 2020 but can also activate behavioral biases. This edition of our recurring behavioral finance insights examines loss aversion and confirmation bias in the context of COVID-19.
Leadership Insights

Focusing on the longer term and maintaining an appropriately diversified portfolio are potentially good first steps for the current COVID-19 continuum. Read what our CIOs are watching out for in the second half of 2020.
Behavioral finance

Teaching clients about the most common behavioral biases can make it easier to identify and address them—and potentially lead to stronger, more durable advisor/client relationships.

Each year, we consider the trends that could shake up economies and markets in the years ahead. This exercise is especially relevant entering 2021, after a year in which COVID-19 and its economic fallout shook up the entire globe. We expect the following themes to have an especially strong influence on investors over the next 12 to 18 months:

Behavioral finance

Unprecedented and uncertain are two conditions that not only describe 2020 but can also activate behavioral biases. This edition of our recurring behavioral finance insights examines loss aversion and confirmation bias in the context of COVID-19.
Leadership Insights

Focusing on the longer term and maintaining an appropriately diversified portfolio are potentially good first steps for the current COVID-19 continuum. Read what our CIOs are watching out for in the second half of 2020.
Behavioral finance

It’s great to find other voices that support what you believe. But this confirmation bias approach can be damaging—especially for investors. Here's how to bring more perspective to your clients' financial decision making.
Behavioral finance

Overemphasis on recent events can keep you from gathering the information you need to before making a decision. For clients, recency bias may lead to ill-informed investments. Help them take a broader view of the financial markets.
Behavioral finance

Taking a loss is painful. In fact, research suggests that we feel the pain of loss much more than the joy of equivalent gains. But efforts to avoid losses can sometimes introduce new risks that may be damaging—especially for investors. Read more.
Behavioral finance

Most of us tend to overestimate our abilities. When it comes to money matters, such overconfidence can cause real trouble. Here’s how to help clients take a more measured approach.
Behavioral finance

It’s easy to stick with what you know. But for clients, this investment approach can lead to less diversified—and potentially riskier—portfolios. Here’s how to spot and address home bias.
Behavioral finance

Teaching clients about the most common behavioral biases can make it easier to identify and address them—and potentially lead to stronger, more durable advisor/client relationships.
Behavioral finance

With COVID-19 clouding the horizon, your clients may be experiencing a range of intense emotions, leading to irrational investing behavior. That’s not surprising, given that major crises are like petri dishes that culture behavioral finance biases.
Investment Insights

One potential opportunity is Fundamental Index® strategies, which may help reduce the negative effects of behavioral finance biases that can crop up during a market crisis like COVID-19.