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The (Mis)behavior of Markets and the 3-in-1 Trader Model by Hank Pruden |
There is powerful agitation in the U.S.A. and globally to shift responsibility for the management of one’s own investments onto the shoulders of each individual manager. Just as this shift in the burden toward the individual manager is occurring at the corporate and government levels, the manager is faced with a quandary as to how to manage her/his financial investments. As Benoît B. Mandelbrot and Richard L. Hudson observed in their recent book, THE (MIS)BEHAVIOR OF MARKETS Basic Books, U.S.A., 2004., 204): "Orthodox financial theory is riddled with false assumptions and wrong results." The call, therefore, is for new thinking and different approaches for understanding markets and managing investments.
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