Behavioural Finance

What the theory says about the January Effect

By Filipe R Costa Economics & Markets

5 mins. to read

We are now approaching the Christmas season during which people prepare to take a small holiday and to make a few promises regarding the New Year. After all, January represents a new start; it’s an opportunity to correct all our past mistakes and the best time to cut out misbehaviour and improve our lives. The…

Using the 52-Week High To Build a Momentum Strategy

By Filipe R Costa Equities

8 mins. to read

Unlike what Eugene Fama and other efficient markets supporters seem to believe, investors are human, endowed with limited rationality and scarce resources. The human brain just can’t process all financial information that is available in the market at all times, because its capacity is limited. Investors must make investment decisions with incomplete information and there…