Research from behavioral economists shows we are prone to overvalue recent returns more than the longer term — to our deep financial detriment. Yale University’s Robert Shiller and William Goetzmann, together with with Dasol Kim at Case Western Reserve, studied investor expectations of market performance and found that there’s a strong tendency to erroneously anticipate future returns based on recent trading history.
When Pablo Picasso’s “Les Femmes d’Alger (Version O)” sold at Christie’s in New York for $179 million dollars in May 2015, it was only the 36th time in the past 315 years that a world auction record had been set, and the sale raised questions well beyond the art world. How could a single painting be worth so much? Why is art so important to wealthy households? What economic and social factors could lead to enshrining Picasso’s colourful near-abstract portrait as the most valuable picture in the history of the modern world?
Faculty from many of the top business schools in the Global Network for Advanced Management spoke with Global Network Perspectives about the decision by voters in the United Kingdom to leave the European Union and the impact it could have on countries from Chile to South Africa.
Short-term risk of financial panic is low, but significant long-term economic challenges exist
The need to reconceive and renegotiate the UK’s relationship with the rest of Europe will create an ongoing economic