Research paper co-authored by Professor Peter Ayton quoted in Moneyweb article
On 10 Nov, a 2022 paper co-authored by Professor Ayton was cited in an article examining why investors, often have a hard time believing that past performance is no indication of future performance.
The Moneyweb article, titled ‘Fund and market performance: Don’t look in the rear-view mirror’, references and links to a 2022 paper co-authored by Professor Peter Ayton which showed that despite the prevalence of the disclaimer 'past performance is not necessarily a guide to the future', investors persistently used past performance to inform their decisions on selecting investment funds.
In the academic article highlighting the findings, Peter Ayton and his co-authors Leonardo Weiss-Cohen and Philip Newall write:
Participants persistently chased past performance despite the opportunity to learn about the futility of this strategy during 60 repeated decisions with feedback.
Read the full article - 'Fund and market performance: Don’t look in the rear-view mirror'