Description: This article gives an overview and explanation of behavioral finance.

Description: While the major market crash subsequent to the widespread contagion of the COVID-19 virus was readily predictable, the rapid recovery and ongoing growth subsequent to it was not. Market dynamics around the recovery resist characterization by most traditional analytical approaches. In examining the circumstances around the emergence of a large retail class of investors, one sees that ingrained human tendencies, particularly optimism bias, have fueled much investor behavior responsible for the recovery. Understanding this makes it possible to predict potential future crashes and develop behavioral interventions for subsequent market recoveries.

Description: If has been noted that the turnover of many investment funds has been quite high in recent years relative to history and very high in absolute terms. There have been fundamental changes in the marketplace that have caused the high turnover. Investment horizons have been shortened. This article discusses the changes.

Description: The author describes two papers that find that stock returns in the 15 days around the new moon are double the stock returns in the 15 days around the full moon. Is this true, even though psychological studies have established no causal link?

Description: Review of the address given by Richard H. Thaler, Robert P. Gwinn Professor of Behavioral Science and Economics at the University of Chicago at the Investment Section at the Society of Actuaries meeting in New York on October 20.