Acclaimed financial economist and Nobel laureate Dr Myron Scholes has imparted investment wisdom accrued over a decorated 50-year career at an event held in Brisbane by Griffith University and Janus Henderson Investors (JHI).
Appearing at the ‘Knowledge. Shared’ seminar earlier this month, Dr Scholes – who is also JHI’s Chief Investment Strategist – delivered a keynote speech on methods to achieve better investment outcomes for investors.
Dr Scholes told the room of gathered industry professionals and academics that the majority of investment risk and returns comes from extreme positive and negative outcomes, also known as the ‘tails’ of the distribution of returns.
He explained, in his opinion, investors focus too much attention on the calculation of average returns and volatility of their investments.
Dr Scholes’ analysis suggests investors can achieve better outcomes by identifying market conditions that are more likely to deliver positive or negative tail events; to that end, he and his team at JHI have