Chris Wheal is editor Capital.com. He set up and ran Daily Finance in the UK and then merged it with Walletpop to launch AOL Money. He previously edited three B2B magazines, including Insurance Times, as well supplements in the Guardian. He has won awards for business and consumer journalism.
Asset liability (or cashflow) matching and portfolio immunisation are two methods insurance and pension fund managers use to ensure they can pay their liabilities.
The overconfidence effect or bias is what makes a person believe their ability is greater than the evidence supports. It is exaggerated in confident people, resulting in worse decisions
The familiarity bias or heuristic (rule of thumb) makes you invest in the familiar even though a less well-known alternative would produce a better return.
Kim Stephenson is a former financial adviser who retrained as a psychologist. Being a financial psychologist possibly makes him unique. The British Psychological Society thinks so.
If you consecutively lose money on trades and, to recover your losses, double your investment on each subsequent trade, you’re following the Martingale strategy
Herding bias is thought to be the most influential bias in trading markets. In a 2015 survey by the US CFA Institute 34% of members ranked it the most influential.
The good news for the US economy came from the house price figures, showing not just rising demand but rising prices. New single-family homes rose 2.9%
The disposition effect is when an investor, or investors, hold on to losing stocks too long and sell winning stocks too soon. It is based on fear of making losses.
Insurers love jargon and call insurance that protects the assets of wealthy individuals high net worth (HNW) insurance. It is non-standard, tailored cover to suit your needs. It has better terms, fewer exclusions and usually comes with some risk management help too. Because you’re worth it.