Thursday, October 30, 2008
Behavioral Finance at JPMorgan
Behavioral finance is the study of how investors make decisions—and how these decisions affect stock prices and broad market movements. Investors are human, and humans aren’t perfectly rational. When they buy on emotion, they not only jeopardize their own investment plans, but also create opportunities for others in the market.
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Behavioral finance is the study of how investors make decisions—and how these decisions affect stock prices and broad market movements. Investors are human, and humans aren’t perfectly rational. When they buy on emotion, they not only jeopardize their own investment plans, but also create opportunities for others in the market.
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