I am passionate about behavioral economics (behavioral finance is behavioral economics applied to finance problems; it is thus a subset of behavioral economics). I teach it in my classes and have written a book about it.

Alternative Risk Premia (ARP) portfolios have started to supplant hedge fund investments in institutional portfolios. Perceived lower cost, better liquidity, and improved transparency have diverted assets or created new demand within the alternative space. As part of the move toward factor investing, we will discuss what ARPs are and their pros and cons for investors.

As you go about your daily life, especially when making choices involving some sort of trade-off (exchanging money for goods and services, exchanging time for money, making investment decisions, deciding how to get the best value for money on your weekly grocery trip), you probably think of yourself as cool, calm, rational, and in control.

We cannot predict the markets—or can we? History repeats is an old saying that proves to be true for markets! Markets, over time, follow rules which are scientifically investigated and proven. Therefore, there are three basic things that you have to consider when investing—under special consideration of a long investment horizon.

While it certainly may feel like your entire existence is engulfed by this test for six months out of the year, it is naïve to think that the rest of the world cares or it will place itself on pause until you are less busy studying.