barberis

Hedge Funds

Volatility junkies: how ‘realisation utility’ fuels bubbles

People tend to do things that make them feel good, and avoid things that make them feel bad. Intuitive, as the revelations of psychology often are, this nugget has found new application in explaining some of the seemingly irrational behaviour of individual investors. STEPHEN SHORE reports. Nicholas Barberis, professor of finance at the Yale School […]
Hedge Funds

Volatility junkies: how ‘realisation utility’ fuels bubbles

People tend to do things that make them feel good, and avoid things that make them feel bad. Intuitive, as the revelations of psychology often are, this nugget has found new application in explaining some of the seemingly irrational behaviour of individual investors. STEPHEN SHORE reports. Nicholas Barberis, professor of finance at the Yale School […]