Investor Behavior and Market Efficiency

2007 Public Lectures February 7 March 14 April 18 May 9 June 13 July 25 August 15 September 11- 13 October 17 November 14

Terrance Odean, Willis H. Booth Professor of Banking and Finance at the Haas School of Business, University of California at Berkeley

Discussant: J. Doyne Farmer, Professor, Santa Fe Institute

The trading records of hundreds of thousands of individual and institutional investors show that individual investors tend to trade too frequently, hold on to their losing investments, and buy stocks that are in the news. Psychological motivations for these behaviors are overconfidence, a desire to avoid feeling regret, and the limits of human attention. These trading behaviors lead to substantial reductions in portfolio returns for individual investors. Furthermore, the trading of individual investors forecasts future asset returns.

Wednesday, August 15 at 7:30 pm

James A. Little Theater

New Mexico School for the Deaf

1060 Cerrillos Road, Santa Fe