The psychology of investing, 4e

An old Wall Street adage states that two factors move the market: fear and greed. Many people would say that greed dominated during the tech bubble of the late 1990s and fear has ruled behavior in the recent financial crisis. Although true, this characterization is far too simplistic. The human mind is so sophisticated and human emotions are so complex that the emotions of fear and greed do not adequately describe the psychology that affects people as they make investment decisions. This book is one of the first texts to delve into the fascinating and important subject. This fourth edition of the Psychology of Investing has a new chapter that focuses on framing effects, and new evidence and ideas have been added to every chapter.