behavioural finance

Bernartzi’s Eureka moment

Sometimes we know something is wrong, but we need bright sparks like the behavioural economist, Shlomo Bernartzi to explain why in an authoritative and compelling way. Back in November he started his highly impressive presentation to the ASFA Annual Conference by telling us that “it does not help anyone to say that ‘everyone is saving […]

The misguided idealism of Arthur Sinodinos

There are many reasons to applaud the discussion paper issued by Treasury on better governance and transparency in superannuation, but its ownership by someone without an in-depth knowledge of retirement planning is worrying. That Arthur Sinodinos, the minister for financial services and assistant treasurer, also has a background in banking and thus a clear bias […]

A letter to Tony Abbott

Dear Prime Minister In January 1999 you gave a highly persuasive speech about the folly of Australia swapping its current constitution for an unproven model. In the speech, which appears in a book entitled Men and Women of Australia, our greatest modern speeches, you recognised that the current constitution had some alarming incongruities, but for […]
Hedge Funds

Telling tales trumps abstract facts

Scenario analysis can be a useful tool in determining investment strategy, but it is not easy. It certainly involves more than good and bad perturbations around a base case. Excellent scenario analysis requires deep thinking and imagination to create a set of plausible futures. Each scenario does not have to be likely, but if it […]