ANN ARBOR — During the darkest days for investors after the 2008 financial crisis that swallowed Lehman Brothers up like a sinkhole, the common wisdom was to hold tumbling shares and wait for better days. (more…)
ANN ARBOR — An entrepreneur’s backstory plays a critical role in the success or failure of a fledgling venture, says Lianne Lefsrud, a postdoctoral fellow at the University of Michigan Ross School’s Erb Institute.
“Especially for entrepreneurs with limited financial resources, stories are a way to create resources if you can make sense of the world with your stories,” Lefsrud said. (more…)
COLUMBIA, Mo. – As the U.S. economy continues to lag, many investors remain wary about taking risks with the stock market. Now, researchers at the University of Missouri have concluded that this attitude toward investment risk-taking is influenced by the age of the investor and the economic climate of the time period. Rui Yao, an assistant professor of personal financial planning in the College of Human Environmental Sciences at MU, found that willingness to take financial risks, or “risk tolerance,” decreases as investors age.
“Age has a pragmatic relationship with financial risk,” Yao said. “Each additional year of life represents a shortened time horizon for recouping market losses. In addition, individuals approaching or in retirement may shift focus from asset accumulation to asset preservation. These individuals may become relatively more concerned about potential loss of money when they are closer to retirement or no longer have a steady source of income.” (more…)
