FT.com / FTfm / Columnists - More respect for behavioural studies
read complete article : FT.com / FTfm / Columnists - More respect for behavioural studies"From now on, the asset management industry is going to have to take more account of risk, according to the responses to FTfm in its informal survey of the industry. “The most important lesson is about managing risk”; “the crisis has highlighted the importance of managing risk in asset management, regardless of its nature”; “risk has to go back to the heart of the investment approach of a solid investment manager” – these are typical comments from the chief executives, chief investment officers and consultants who pondered the lessons of the past decade and forecast the challenges of the next for us.
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As John Belgrove of Hewitt Associates said in our survey, “behavioural finance disciplines are likely to become more dominant, respected and better developed” in the coming decade. Better developed is important, because in spite of the Nobel Memorial prize for economics awarded in 2002 to Daniel Kahneman (a psychologist), behavioural finance is still not sufficiently developed for it to be properly integrated with market theory."
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