Behavioral Finance and Investor Psychology
Can AI read the room? How news sentiment signals which stocks will bounce back after a crash
A new study of 2.7 million news articles finds that AI-generated sentiment scores can help distinguish temporary stock crashes from lasting declines, though the signal is getting faster.
When optimism mutes the message: How investor mood shapes crypto’s response to economic news
A study of 100 cryptocurrencies and 32 U.S. economic releases finds that bullish investor sentiment significantly weakens how sharply crypto prices and trading volumes react to macroeconomic news.
Why nominal interest rates bite harder than textbooks suggest
New research argues that fixed nominal mortgage payments and payment-to-income limits mean nominal interest rates directly affect what households can borrow, independent of real rates, with implications for housing markets and macro models.
The psychology of “manifesting”: Why believers feel more successful but often aren’t
A new scale measuring belief in "manifestation" finds that about a third of Americans endorse it. Believers feel more successful and optimistic, but show no higher income or education, and take more financial risks.
When a CEO’s foreign accent becomes an asset: What investors actually hear
An experiment using AI-generated CEO voices finds that investors were willing to invest more in companies led by foreign-accented CEOs — but only when those CEOs had a strong pre-existing reputation.
Congressional stock trades look a lot like retail investing, new study finds
A new analysis of a decade of congressional stock trades finds lawmakers don't beat the market, and their buy-sell decisions closely track publicly available analyst ratings and retail social media sentiment.
Researchers identify a costly pattern in consumer debt repayment
New research finds that borrowers with multiple installment loans tend to prepay the oldest one first, even when paying down a newer loan would save more interest.
Can GPT-4 pick stocks? A new AI framework reports market-beating returns on the S&P 100
Researchers built an AI framework around GPT-4 that reads news, earnings reports, and macro data to pick stocks. On the S&P 100, it beat the index by 10 to 30 percentage points over 15 months.
What 120 studies reveal about financial literacy as a lever for economic inclusion
A systematic review of 120 studies maps what financial literacy programs teach, who they reach, what effects participants report, and where implementation breaks down across diverse global contexts.
When illness leads to illegality: How a cancer diagnosis reshapes the decision to commit a crime
A study of Danish administrative records finds that cancer diagnoses are linked to a 14% rise in criminal convictions, driven by lost income, shorter survival horizons, and psychological distress.