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cautious
14h agoValuation rule-of-thumb questioned as investors 'forget the scientific method'
A behavioural study published on 31 October indicates that many investors continue to rely on long-standing heuristics and 'rules of thumb' instead of rigorous analysis, despite data showing a 90 % confidence that these heuristics underperform. The report suggests that the recent speculative rally in equities may be partly driven by simplified mental models rather than disciplined evaluation of risk and return. Market-watchers caution that such behavioural gaps could amplify drawdowns if sentiment shifts abruptly.
cautious
14h agoValuation rule-of-thumb questioned as investors 'forget the scientific method'
A behavioural study published on 31 October indicates that many investors continue to rely on long-standing heuristics and 'rules of thumb' instead of rigorous analysis, despite data showing a 90 % confidence that these heuristics underperform. The report suggests that the recent speculative rally in equities may be partly driven by simplified mental models rather than disciplined evaluation of risk and return. Market-watchers caution that such behavioural gaps could amplify drawdowns if sentiment shifts abruptly.
cautious
Valuation rule-of-thumb questioned as investors 'forget the scientific method'
about 14 hours ago
1 min read
75 words
Investors are increasingly relying on heuristics rather than rigorous analysis, which may raise risks in current market rally.
A behavioural study published on 31 October indicates that many investors continue to rely on long-standing heuristics and 'rules of thumb' instead of rigorous analysis, despite data showing a 90 % confidence that these heuristics underperform. The report suggests that the recent speculative rally in equities may be partly driven by simplified mental models rather than disciplined evaluation of risk and return. Market-watchers caution that such behavioural gaps could amplify drawdowns if sentiment shifts abruptly.
A behavioural study published on 31 October indicates that many investors continue to rely on long-standing heuristics and 'rules of thumb' instead of rigorous analysis, despite data showing a 90 % confidence that these heuristics underperform. The report suggests that the recent speculative rally in equities may be partly driven by simplified mental models rather than disciplined evaluation of risk and return. Market-watchers caution that such behavioural gaps could amplify drawdowns if sentiment shifts abruptly.
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Oct 31, 2025 • 09:09 IST