…information and are therefore more prone to emotional reaction and inconsistency. Thaler asserts that mathematical models and economic theory assume rational behavior, but that actual human behavior is quite different…
Search Results for: psychology OR behavior
Investor Behavior Shows Delayed Reaction to News
A new study by Columbia Business School economists shows that the influence of news on financial markets is “often greater a year after the report than a month,” according to…
Bull Market Can Be Bolstered by Retirement Account Inflow
…in Barron’s. In his book, titled Adaptive Market, Financial Evolution at the Speed of Thought, behavioral finance authority Andrew Lo argues that market forces other than investor buying and selling…
A Practical Approach to Quant Investing
…at their lows. The resulting decrease in performance is referred to as the behavior gap and it is estimated to be at least 1.2% per year, but is much higher…
Leading Economist Says Stocks Can Continue to Climb
Although U.S. stock valuations are stretched, economist and leading authority on behavior finance Andrew Lo says this can continue for years due to growing demand for equities by retirement funds,”…
Jason Zweig: Prepare Rather Than Worry About Increased Volatility
…about 30-years old and that stocks have “fluctuated in a narrow band about 80% of the time—similar to their current behavior.” Zweig cites comments by University of Rochester finance professor…
Zweig Talks Color and Investor Behavior
New research shows that color can have a significant influence on investor behavior, writes Jason Zweig in a recent Wall Street Journal article. According to Zweig, researchers have found that…
Be Like Buffett and Avoid Pessimism
The human brain is hard-wired to hold on to negative ideas and events more than positive ones, which can manifest itself in investor behavior, explains Validea CEO John Reese in…
Investor Returns Hurt by Attempts to Time the Market
…the gap if “everyone left their funds alone.” Even in overseas markets, writes Kinnel, “the gaps and behavior patterns were not so different from what we saw in the U.S.”…
Focus on the "Known Knowns" When Investing
…know more than they do. While this can be costly in any context, it can break the bank when mixed with investing. In the field of psychology, this tendency is…