Behavioral Finance and Investor Psychology
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.
How your personality may shape whether you pick value or growth stocks
A study of 351 students in Italy and Pakistan links Big Five personality traits to value versus growth stock preferences, with financial confidence and cognitive flexibility as the connecting pathways.
New research links local employment shocks to cognitive decline in older men
New research using local labor-demand shocks finds that employment losses are linked to measurable cognitive decline among men aged 51 to 64, extending earlier findings about retirement-age workers to the years well before traditional retirement.
What traders actually look at: Eye-tracking study finds the price chart is largely ignored
An eye-tracking experiment finds that traders fixate on the order book, not the price chart, when making decisions in simulated asset markets.