Yet, when we explain our own achievements in life, we are biased to over-value our personal characteristics as explaining our successes while also over-valuing our situation factors in explaining our failures.
When we decompose factorsexplaining the returns we find that the dividend yield factor actually contributed negative 1.02% annualized to the excess return.
These two factors go far towards explaining why Swedish voters turned against the Social Democrats, for whom this was the worst electoral result since 1914.
Morgan Stanley's Horacio Valeiras says that sector and country factors are equally important in explaining stock performance across the world, while sector considerations account for about two-thirds of the effect in the euro area.