Filed Under:Health Insurance, Individual Health

New Behavioral Finance Findings and Optimal Asset Allocation (AdvisorOne)

That investors will react more to financial market losses than gains is a well-known behavioral finance theory that's become increasingly important in this volatile economy. Enrico De Giorgi, professor in the School of Economics and Political Science at the University of St. Gallen in Switzerland and founding partner at Zurich-based firm Behavioural Finance Solutions, recently published a paper about it: "A Behavioral Explanation of the Asset Allocation Puzzle.”

His research has found that individual investors also have subjective mental markers that help them determine where their losses end and their gains begin. Financial advisors who can figure out their clients' individual markers will go a long way toward understanding loss aversion and coming up with the optimal asset allocation for an individual.

Read the whole story.

Featured Video

Most Recent Videos

Behind the scenes with Vicki Gunvalson [VIDEO]

Provided by LIFEHEALTHPRO

In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI

Provided by LIFEHEALTHPRO

Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's

Provided by LIFEHEALTHPRO

An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Protesters Disrupt WellPoint Annual Meeting

Provided by LIFEHEALTHPRO

Hecklers call for more disclosures of information about political contributions.

Related resources

More Resources

Comments

Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Close
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.