The Psychology of Investing

by Lawrence E. Lifson, Richard A. Geist

Overview

The first comprehensive book to apply psychological theory to a broad range of investment topics, The Psychology of Investing explores the interface between human emotions and financial decision making. Drawing on the invaluable wisdom and cutting-edge research of top experts in what is an area of ever-increasing interest and importance, it describes how both group dynamics and an individual's personal psychology affect investor decisions.
This authoritative and practical book features contributions from professional psychologists, psychiatrists, academics, and investment practitioners who are among the leading thinkers and teachers in their fields. Among those sharing their innovative ideas and far-reaching thoughts on such topics as contrarian theory, momentum strategies, and investor overreactions are faculty members from Harvard Medical School and Harvard Business School, columnists from Forbes magazine, publishers of investment newsletters, and authors of investment related books.
Groundbreaking in the way it explores the connection between psychology and investment performance, it is essential reading for anyone seeking insight into this unique relationship.

Product Details

ISBN-13:	9780471183396
Publisher:	Wiley
Publication date:	03/25/1999
Series:	Wiley Investment , #70
Pages:	208
Product dimensions:	6.10(w) x 9.10(h) x 0.80(d)

About the Author

PAUL S. LEVY is Professor of Epidemiology and Biostatistics at the University of Illinois School of Public Health. He is a Fellow of both the American Statistical Association and the American College of Epidemiology and has been widely published during his long and distinguished career as a statistician and epidemiologist. Most recently he served as section editor for design of experiments and sample surveys of the Encyclopedia of Biostatistics.
STANLEY LEMESHOW is Professor of Biostatistics in the School of Public Health at the University of Massachusetts at Amherst. He is a Fellow of the American Statistical Association and has published numerous articles in statistical and biomedical journals. In addition to this book, he has coauthored Applied Logistic Regression (Wiley), Adequacy of Sample Size in Health Studies, and Applied Survival Analysis (Wiley).

Table of Contents

Investor Overreaction (D. Dreman).

The Emotions of Risk (R. Geist).

Why It Is So Difficult to Sell (D. Cassidy).

The Psychology of Picking Stocks (M. Stichnoth).

Psychopathology of Everyday Investing (J. Schott).

Mindsets on Wall Street (S. Hayes).

Diagnosis Before Investment (H. Levinson).

Momentum Strategies (L. Chan, et al.).

The Misuse of Past-Performance Data (M. Hulbert).

Tilting the Investment Odds in Your Favor (S. Halpern).

The Stock Market Hysteria Still to Come (B. Chapman).

Index.

What People are Saying About This

Robert W. Siroka

The contributors break new ground in addressing the complexities of investing from the perspectives of Personality Theory, Behavioral Finance, Organizational Psychology, Statistical Analysis, as well as through the eyes of the savvy market analyst. Eminently readable and technically sophisticated, this volume should stimulate more research into the world of money, markets, and motivations. (Robert W. Siroka, PhD, ABPP, Director, Center for the Pyschosocial Study of Financial Behavior, NYC)

Robert C. Pozen

This compendium does an excellent job of analyzing the important, but understudied, psychological forces in individual investing. It includes provocative discussions of topics such as the asymmetries between buy and sell decisions, the differential reactions to earnings surprises, and the emotional dynamics of momentum investing. (Robert C. Pozen, President and Chief Executive Officer, Fidelity Management and Research Company)

Thomas G Gutheil

In the irrational world of finance, this book uses psychology to see beyond the myth of the 'rational investor.' This clear, easy-to-follow lesson in behavioral economics is truly a shining example of mind over money. (Thomas G. Gutheil, MD, Professor of Psychiatry, Harvard Medical School)

Arnold S. Wood

If everyone were perfect, profits form investing would not exist. The collective insights gained from The Psychology of Investing provide invaluable clues to imperfect human behavior and how to exploit it in the financial markets. (Arnold S. Wood, President and Chief Executive Officer, Martingale Asset Management, L.P.)

Editorial Reviews

"This compendium does an excellent job of analyzing the important, but understudied, psychological forces in individual investing. It includes provocative discussions of topics such as the asymmetries between buy and sell decisions, the differential reactions to earnings surprises, and the emotional dynamics of momentum investing." -Robert C. Pozen, President and Chief Executive Officer, Fidelity Management and Research Company
"If everyone were perfect, profits form investing would not exist. The collective insights gained from The Psychology of Investing provide invaluable clues to imperfect human behavior and how to exploit it in the financial markets." -Arnold S. Wood, President and Chief Executive Officer, Martingale Asset Management, L.P.
"In the irrational world of finance, this book uses psychology to see beyond the myth of the 'rational investor.' This clear, easy-to-follow lesson in behavioral economics is truly a shining example of mind over money." -Thomas G. Gutheil, MD, Professor of Psychiatry, Harvard Medical School
"The contributors break new ground in addressing the complexities of investing from the perspectives of Personality Theory, Behavioral Finance, Organizational Psychology, Statistical Analysis, as well as through the eyes of the savvy market analyst. Eminently readable and technically sophisticated, this volume should stimulate more research into the world of money, markets, and motivations." -Robert W. Siroka, PhD, ABPP, Director, Center for the Pyschosocial Study of Financial Behavior, NYC

From the Publisher

This compendium does an excellent job of analyzing the important, but understudied, psychological forces in individual investing. It includes provocative discussions of topics such as the asymmetries between buy and sell decisions, the differential reactions to earnings surprises, and the emotional dynamics of momentum investing.

Robert C. Pozen

If everyone were perfect, profits from investing would not exist. The collective insights gained from The Psychology of Investing provide invaluable clues to imperfect human behavior and how to exploit it in the financial markets.

Arnold S. Wood

In the irrational world of finance, this book uses psychology to see beyond the myth of the 'rational investor.' This clear, easy-to-follow lesson in behavioral economics is truly a shining example of mind over money.

Thomas G. Gutheil

The contributors break new ground in addressing the complexities of investing from the perspectives of Personality Theory, Behavioral Finance, Organizational Psychology, Statistical Analysis, as well as through the eyes of the savvy market analyst. Eminently readable and technically sophisticated, this volume should stimulate more research into the world of money, markets, and motivations.

Robert W. Siroka