{"id":186,"date":"2017-12-29T11:41:21","date_gmt":"2017-12-29T11:41:21","guid":{"rendered":"http:\/\/www.sugata.in\/?p=186"},"modified":"2017-12-29T11:41:21","modified_gmt":"2017-12-29T11:41:21","slug":"limited-attention-and","status":"publish","type":"post","link":"http:\/\/www.sugata.in\/index.php\/2017\/12\/29\/limited-attention-and\/","title":{"rendered":"Limited attention and &#8230;"},"content":{"rendered":"<p>One part of my academic research agenda deals with the effects of limited attention on professional investing. <a href=\"https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=2565749\">This paper<\/a> uses marital events as a shock to attention and shows how managers behave differently when they&#8217;re getting married or divorced. We find that managers in general become less active in their trading\/investing, suffer from behavioral biases more, and perform poorer.<\/p>\n<p>This past semester, I moved from the Univ. of Florida to the Univ. of Alabama and prepped a couple of new classes. While not as stressful as marriage or divorce, I did devote a bit less time to my portfolio this semester &#8230; so what happened in my case?<\/p>\n<p>The biggest change was (1) I rebalanced less&#8230; I probably ran my screen once or twice the entire semester to look for equities to deploy assets to. (2) I did not, even once, look for improvements to my screens or run any of my secondary screens.<\/p>\n<p>The effects were not immediately felt on performance, but I suspect if I continued on this &#8220;autopilot&#8221; path, so to speak, the end result would be a less than manicured portfolio and eventually, a stale and less than robust investment screen. All in all, I feel my personal experience is consistent with what we found in the paper above.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>One part of my academic research agenda deals with the effects of limited attention on professional investing. This paper uses marital events as a shock to attention and shows how managers behave differently when they&#8217;re getting married or divorced. We find that managers in general become less active in their trading\/investing, suffer from behavioral biases [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"http:\/\/www.sugata.in\/index.php\/wp-json\/wp\/v2\/posts\/186"}],"collection":[{"href":"http:\/\/www.sugata.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sugata.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sugata.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sugata.in\/index.php\/wp-json\/wp\/v2\/comments?post=186"}],"version-history":[{"count":2,"href":"http:\/\/www.sugata.in\/index.php\/wp-json\/wp\/v2\/posts\/186\/revisions"}],"predecessor-version":[{"id":188,"href":"http:\/\/www.sugata.in\/index.php\/wp-json\/wp\/v2\/posts\/186\/revisions\/188"}],"wp:attachment":[{"href":"http:\/\/www.sugata.in\/index.php\/wp-json\/wp\/v2\/media?parent=186"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sugata.in\/index.php\/wp-json\/wp\/v2\/categories?post=186"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sugata.in\/index.php\/wp-json\/wp\/v2\/tags?post=186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}