Tag Archives: Terrance Odean

U.S. Investor Behavior: The Government Report

The Securities and Exchange Commission has launched an investor education site, investor.gov that includes a comprehensive summary of what we’ve learned over the last 30 years about how we investors behave and the mistakes we make. This Library of Congress report published last August, Behavioral Patterns and Pitfalls of U.S. Investors, manages in sixteen pages to highlight some of the most important insights of the work of leaders in this academic field like Terrance Odean, Richard Thaler, Daniel Kahneman, Meir Statman, and many others.

The Role of Behavioral Finance

Nestled into a site that is largely a primer for new investors, the study is an interesting acknowledgement by the top securities regulator that there’s value to be found in better understanding our own true investing selves. Continue reading

Why Investing in Stocks in the Headlines Is Not a Good Idea

Don't Invest in Stocks Making HeadlinesBehavioral finance research has shown that individual investors too often invest in  stocks that are in the news, and that those stocks then lose money.  A recent story in the New York Times illustrates why this may become an even less successful stock investing strategy: program traders are beating average investors to the punch. Continue reading