We all have a tendency to believe that the way we invest is the best way. As quantitative investors, we can sometimes feel that there is no reason anyone should ever use a discretionary strategy. But like most issues in investing, there are two sides to this argument. In this episode, we talk about the benefits of both quantitative and discretionary investing.
- Why quantitative strategies can limit the impact of emotion and biases
- Why discretionary strategies can work better in situations where a more detailed analysis is needed
- How both strategies contain some elements of the other
- Why the ultimate answer may lie in the hands of the end investor
Originally Posted on June 29, 2020 – The Pros and Cons of Quantitative and Discretionary Investing
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