Behavioural Finance - Research Paper Example

Montier’s articles and assess them one by one by providing supportive argument. Under this topic, Mr. Montier examined the QWERY keyboards and gave reasons as to why they are still in use today (Shiller 51). It is evident that QWERTY keyboard was established in 1874 by Christopher Sholes who saw the need to reduce the typing speed because the type writer that was in use during those times was jamming of plates in the mechanical arms due to the ease of typing that made people type faster (Thaler 8).

Therefore, Mr. Montier clearly explained why the QWERTY keyboard was developed and why it is in use today. He also touched on the concept of Dvorak keyboard which is an alternative keyboard to the QWERTY but it was not adopted because it is efficient than Dvorak and certain studies suggest that the difference in their speed is very low and insignificant. However, Montier’s problem is that with adaptation of QWERTY keyboard up to date clearly implies that the benchmark policy that was used to develop this keyboard limits technological advancement and that, personally, he cannot come up with a policy benchmark (Thaler 3).

How is technology involved? His reason for not coming up with a policy benchmark is the fact that such policies restrict technological advancements and confine them to one place for a long time (Dopfel 78). The reason as to why I support his argument of rejecting policy portfolios is the fact that they do not interpret investment risks correctly. This is because they concentrate too much on profit making than on the risks involved and the best way to deal with them. Therefore, Mr. Montier’s argument about of typewriters and benchmarks is correct.

According to Montier, the notion of investment that was used in earlier times was better than the modernized idea and depiction of investment (Shiller 52). He clearly imply that the main aim of investment in early days was to look for value through purchasing what was