Has the hunt for investable factors gone too far?
In the academic literature on predicting asset values, researchers have proposed hundreds of factors to explain an individual stock’s return.
Lower earners tend to base their decisions and thinking on their personal experiences with the economy.
People have a tendency to rely on what they've personally observed, rather than objective assessments.
FOMC members’ voting behavior, federal-funds-rate decisions, and inflation forecasts are substantially influenced by the members’ personal experiences with inflation.