Financial knowledge

No, he had not been expecting this. Robert J. Shiller reacts with visible surprise when the Nobel Committee calls to tell him he is to receive science's highest honour.

In Germany, opinion about a form of investment doesn't necessarily have anything to do with reality. That is shown by the latest GfK investment barometer, which has been examining the behavior of private investors annually since 1999. For example, 38 percent of respondents consider gold attractive, yet only six percent are actually invested in the tangible asset.

In stock market jargon, these rare birds stand as a symbol for unforeseen events – with serious consequences for the global economy.

Harry Markowitz revolutionized the stock markets with his portfolio theory. Even after 65 years, the cornerstones of his work still form the basis for countless investment models.

What should a portfolio look like to be optimally prepared for 2017 as well? Arndt Kussmann, head of the Portfolio Solutions department at quirin bank AG, gives an overview of the most important insights from financial science.

Nobel laureate Daniel Kahneman recognised that people make suboptimal decisions above all in difficult situations. When it comes to investing, that can have fatal consequences. Second part of our series: Icons of financial science.