Investment Strategies

Investment strategies relate to an extensive range of aspects and have attracted the attention of investors and students, academics, researchers, financial executives, portfolio managers, security analysts, financial engineers, practitioners, including at the level of Nobel prizes (Tobin, 1981, for...

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collection Directory of Open Access Books
description Investment strategies relate to an extensive range of aspects and have attracted the attention of investors and students, academics, researchers, financial executives, portfolio managers, security analysts, financial engineers, practitioners, including at the level of Nobel prizes (Tobin, 1981, for the analysis of financial markets; Markowitz, Sharpe, 1990, for modern portfolio models; Black, Scholes, Merton, 1997, for option pricing; Akerlof, Stiglitz, Spence, 2001, for markets with asymmetric information). Even common people talk daily about investments, investment tactics and strategies, and how to obtain success. In the absence of an investment philosophy, they try to copy celebrities or professional advisors without understanding the mechanics of markets, their core beliefs, strengths, or weaknesses. Beyond the traditional stocks and bonds, there are many other types of assets and alternative investments, and investors are overwhelmed by the huge number of portfolio architecture and management options. Regardless of the types of investors, portfolios are no longer a simple list of assets, and their management requires impressive skills. Decision models have significantly evolved from the Markowitz portfolio model toward capital market paradigms in the context of managing unrealistic assumptions or adding the treatment of market imperfections, multiperiod objectives, and transaction costs. The index of portfolio risk provides an intuitive image of diversification. There is an interest in the integration of new visions in investment strategies: determinism, complexity, nonlinearity, self-organization and chaos, trading rules, evolutionary games, real-options games and artificial markets, bounded rationality, heterogeneous agents, and behavioral investments. From the evolutionary perspective, investors interpret information by encoding and categorization, trying to simplify the strategies by using rules of thumb and heuristics. The present work contributes to the understanding of current investment processes by offering the tactical and strategic elements specific to global markets as well as emerging ones in a multilayer approach useful to decision-makers, investors, students, and researchers in the field.
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spelling doab-20.500.12854ir-1465532024-10-25T10:54:41Z Investment Strategies Prelipcean, Gabriela Boscoianu, Mircea Economic theory and philosophy thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy Investment strategies relate to an extensive range of aspects and have attracted the attention of investors and students, academics, researchers, financial executives, portfolio managers, security analysts, financial engineers, practitioners, including at the level of Nobel prizes (Tobin, 1981, for the analysis of financial markets; Markowitz, Sharpe, 1990, for modern portfolio models; Black, Scholes, Merton, 1997, for option pricing; Akerlof, Stiglitz, Spence, 2001, for markets with asymmetric information). Even common people talk daily about investments, investment tactics and strategies, and how to obtain success. In the absence of an investment philosophy, they try to copy celebrities or professional advisors without understanding the mechanics of markets, their core beliefs, strengths, or weaknesses. Beyond the traditional stocks and bonds, there are many other types of assets and alternative investments, and investors are overwhelmed by the huge number of portfolio architecture and management options. Regardless of the types of investors, portfolios are no longer a simple list of assets, and their management requires impressive skills. Decision models have significantly evolved from the Markowitz portfolio model toward capital market paradigms in the context of managing unrealistic assumptions or adding the treatment of market imperfections, multiperiod objectives, and transaction costs. The index of portfolio risk provides an intuitive image of diversification. There is an interest in the integration of new visions in investment strategies: determinism, complexity, nonlinearity, self-organization and chaos, trading rules, evolutionary games, real-options games and artificial markets, bounded rationality, heterogeneous agents, and behavioral investments. From the evolutionary perspective, investors interpret information by encoding and categorization, trying to simplify the strategies by using rules of thumb and heuristics. The present work contributes to the understanding of current investment processes by offering the tactical and strategic elements specific to global markets as well as emerging ones in a multilayer approach useful to decision-makers, investors, students, and researchers in the field. 2024-10-25T10:54:38Z 2024-10-25T10:54:38Z 2024 book ONIX_20241025_9781837681990_95 2753-894X 9781837681990 9781837681983 9781837682713 https://directory.doabooks.org/handle/20.500.12854/146553 eng Business, Management and Economics image/jpeg n/a https://www.intechopen.com/books/12371 https://mts.intechopen.com/storage/books/12371/authors_book/authors_book.pdf IntechOpen IntechOpen 10.5772/intechopen.105387 10.5772/intechopen.105387 78a36484-2c0c-47cb-ad67-2b9f5cd4a8f6 9781837681990 9781837681983 9781837682713 IntechOpen 20 156 open access
spellingShingle Economic theory and philosophy
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy
Investment Strategies
title Investment Strategies
title_full Investment Strategies
title_fullStr Investment Strategies
title_full_unstemmed Investment Strategies
title_short Investment Strategies
title_sort investment strategies
topic Economic theory and philosophy
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy
topic_facet Economic theory and philosophy
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy
url ONIX_20241025_9781837681990_95