New approaches to risk profiling are garnering increased attention in recent years. Many of these, however, are over-engineered and unnecessary. This is particularly true of those that claim to simultaneously measure multiple parameters of complex decision models using ‘revealed preferences’. Such measures are unstable and, more importantly, confuse aspects of investors’ preferences that should be reflected in their ideal portfolio,...

Art is among the most emotional of asset classes. The journey from art lover to art investor can be littered with pleasure and pitfalls, and the profit may take many forms. For investors who want to take their love of art a step further, the decision to buy a piece of art as an investment may mark the ultimate clash...

Over 8 years ago in 2008, in the early days of setting up the Barclays behavioural finance team, and just before we were hit by the financial crisis, I wrote an article on things to avoid when designing a measure of Risk Tolerance. It contained 12 principles that designers of such tools should follow to ensure that what they are measuring provides a...