You are here

Laws of attraction, dating and factor-based investing

Investors should identify characteristics of stocks that will lead to higher expected returns over the long term.

Most factor-based investing strategies involve combining multiple factors, where attempts to capture the premiums associated with several stock characteristics are made.

THERE are laws of attraction when we seek a partner. We often find ourselves gravitating towards people with certain characteristics. These traits could range from physical attributes to personality traits. It's most likely due to a mix of evolutionary and social reasons, and some research even...

Market voices on: