On this website, I’ll try and share my thoughts on behavioural finance from a quantitative point of view. As much as time permits, I’ll discuss new research in behavioural finance, and bring up older but for some reason or another now timely and interesting topics.
I’ll also discuss data. Big data is a much hyped concept, often hyped way beyond the business realities. You can also make a case that big data are not event particularly relevant in finance where researchers have long since become accustomed to large and often ill-structured data sets. And much of the hype will probably die off anyway before being replaced by something genuinely useful.
Be that as it may, there are new data sources — and big data sources — that I find genuinely interesting. For instance, there are now ways to track the aggregate opinions and sentiment of the investment community in a surprising level of detail. I will come back with examples and ideas on what to make of all this.
Another interesting development is the democratisation of the playing field. This is taking place chiefly due to advances in investment technology and cloud computing, and the growing availability of software and analytics as a service. What this means is that anyone — ok, anyone with some computing skills and investment ideas — can try their hands as a quant. This may be a good thing or a bad thing, but it is happening. I will elaborate on such developments in a separate post.
I will strive for a balance between qualitative discussion, quantitative analysis, data munging, methodological issues, and topics of general interest. My viewpoint is that of an independent quant looking at things that you can do on your own or together with friends and partners, at a point in life where you have some of the ideas but perhaps not the institutional resources at your disposal.