Weekend Reads for Financial Advisors: Emotional Finance and Chaos Theory

Here, in no particular order, are some articles and resources you may find interesting. Happy reading.

Investing

• It’s always worthwhile getting a peek into Jeremy Grantham’s (sometimes depressing, always sobering) thinking. In his latest latest quarterly letter, Grantham says “our last best hopes” for averting the cliff edge are declining fertility rates and improving technology for alternative energy. (GMO, PDF)
• Also, I have flagged his before, but if you missed Charlie Rose’s recent interview with Grantham, here it is again. (Charlie Rose)

Behavioral Finance/Behavioral Economics

Retirement/Mutual Fund Fees

• Frontline‘s recent documentary, “The Retirement Gamble,” created quite a buzz on Twitter and the blogosphere. And it didn’t take long for the criticism to start. First up: “Advisers Stung by ‘Frontline’ Criticism.” (Investment News, subscription required)
• Also, what Frontline apparently missed in its documentary, according to the Employee Benefit Research Institute (ERBI): “Gamble” Gambit. (ERBI.org)
• “The ABCDs of Retirement Success,” a January 2013 white paper. (Morningstar)
• When it comes to the impact of trading fees, don’t just do something, sit there. (The Economist)
• Wade Pfau, CFA, has a new post on dynamic retirement strategies, in which he asks: “What all should be incorporated in a modeling approach which seeks to determine an optimal dynamic retirement income strategy?” (Retirement Researcher Blog)
• Here’s a handy resource that I just discovered: Michael Kitces‘s new monthly column highlighting some of the most notable recent news and articles related to retirement. (MarketWatch)
• Larry Fink’s radical retirement recommendation: The United States may need to make retirement savings mandatory. (CNN Money)
• And if you would like to watch Fink’s speech, here is an archived video. (NYU Stern, video)

China/Bitcoins/Currency Wars

Social Media

And Now For Something Completely Different

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

Photo credit: ©iStockphoto.com/JLGutierrez

Lauren Foster

Lauren Foster is managing editor of Enterprising Investor and co-lead of CFA Institute’s Women in Investment Management initiative. Previously, she worked as a freelance writer for Barron’s and the Financial Times. Prior to her freelance work, Foster spent nearly a decade on staff at the FT as a reporter and editor based in the New York bureau. Foster holds a BA in political science from the University of Cape Town, and an MS in journalism from Columbia University.