New article published in by Rob Davenport & Lee Hull entitled Emotion as an Asset Class.
Investors act emotionally, not logically, toward the securities they buy or sell.
This dramatically lowers their returns.
But this also means smart investors will start regarding emotion as something they can base investment decisions on. In effect, they can treat widespread emotion as an asset class.
You can read this article in Securities Technology Monitor or Money Management Executive [$] [pdf]
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