An interesting website on behavioural finance, the "study of the influence of psychology on the behaviour of financial practitioners and the subsequent effect on markets" Sewell (2005). It is a way of factoring irrationality into the study of financial markets.
"Momentum investing" as a riposte to the efficient market hypothesis is a good case-study for behavioural finance. The creed of momentum investing is echoed in Richard Driehaus' oft-quoted quip that "far more money is made buying high and selling at even higher prices". Schwager is good material to gain insight into the phenomena.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment