Behavioral Finance and Investor Psychology

An analysis of 62 cryptocurrencies and over 112 million intraday trades reveals that investor herding peaks during calm, sluggish markets and is strategically amplified or calmed by sophisticated traders.

Financial markets don't just watch the Supreme Court for corporate rulings. New research reveals that sudden shifts in the Court's ideological balance immediately alter investor expectations for inflation, GDP growth, and federal spending.

A recent study examines the impact of removing soda and candy from SNAP eligibility. The research shows these restrictions significantly reduced purchases without raising prices, largely due to how consumers mentally separate their shopping budgets.

A new study finds that individuals who experienced a COVID-19 infection were more likely to invest in cryptocurrency. However, formal financial education appears to buffer against this shift toward high-risk financial behavior.

A new systematic review of 66 studies investigates how debt and financial stress relate to mental health, highlighting the enduring psychological impacts of economic hardship and the factors that can buffer against them.

A new study finds that financial surveys skew pessimistic because they treat all respondents equally, including investors who have already pulled their money out of the market.

A new study reveals that AI-generated, plain-English summaries of mutual fund prospectuses significantly increase retail investors' comprehension and willingness to invest. The preference for simple language holds true for both financial novices and highly experienced investors.

A combination of laboratory experiments and 18 years of brokerage data reveals that investors who hate realizing losses use specific order types and pricing strategies to avoid selling stocks below their original purchase price.

A two-study look at how age reshapes financial choices finds that older adults tend to wait more patiently for delayed rewards, but mostly among lower-income people, suggesting money changes how aging affects decisions.

A study of 1,550 adults examined how three "dark" personality traits relate to money habits and financial well-being, finding distinct patterns for Machiavellianism, narcissism, and psychopathy, though the links were modest in strength.