Psychology of Investing

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).

• 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.

"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