At Voya, other leading academics on behavioral finance
will be assisting Benartzi, including John Payne of the Duke University's Fuqua School of Business.
A fancy name researchers in behavioral finance
use for stress.
When the rally ends, behavioral finance
studies suggest many investors, trapped in their irrationality by the ability to sell, will sell at the bottom and fail to get back in as the market recovers.
Alternatively, it could be the result of investors' inability to fully exploit mispricings -- an effect behavioral finance
researchers call "limits to arbitrage.
By applying behavioral finance
techniques to 401 (k) plan design and implementation, plan sponsors have found they can successfully address many of the challenges presented by participant choice plans.
On the more psychological end of behavioral finance
is the importance of how an investment decision is framed.
Investors should remind themselves of the theory of behavioral finance
, and thus stay alert and constantly reconsider their asset allocations.
No longer merely the rejection of rationality, behavioral finance
has come to have a rigorous theoretical foundation of its own and a significant body of empirical evidence in its support.
& Investor Biases - Dimensions of Investing - Economic Update--Outlook for Real Estate and Impact on the Economy
Professor Shiller is one of the top people in the world in the field of behavioral finance
," said Jack Nyman, director of the Newman Institute.
generalizes from the accretion of empirical discrepancies to argue that many investors are not rational in their financial decision-making, that there are observable directional biases resulting from departures from rational decision-making, and that significant barriers prevent professional traders from fully correcting the mistakes made by less-than-rational investors.
In a nutshell, behavioral finance
, or behavioral economics, is the study of why investors think and do what they do about money and investing.