Irrational Investments and Behavioural Finance

Extrapolation: predicting the future

In the stock market, belief formation is one of the most critical challenges. In our “Finance Tuesdays” series, the first three articles are also focused on belief formation: “availability bias and investments” analyses how people estimate probability based on prevalence or familiarity, “Book review ‘a crisis of beliefs’” is about a novel interpretation of the credit cycle based on representativeness and diagnostic expectations, “Dividend anomaly” introduces mental accounting and […]