Joachim Klement delves into role memory plays in why financial crises keep recurring over time in his working paper “The Flaws of Our Financial Memory.” The chief investment officer of Zurich’s Wellershoff & Partners Ltd., believes the problem can be traced to flaws in memory that he calls the "seven sins."

New research suggests that market motion is far more important than either asset allocation or active portfolio management, accounting for 75% of all market returns (or lack thereof).