Behavioural Finance and Investment Advice
Handbook of Behavioral Finance, 2010, Edward Elgar Publishing, pages: 301-321
Posted: 8 Apr 2013 Last revised: 31 Jan 2014
Date Written: 2010
Behavioural finance studies the psychological factors that influence financial behaviour both on the level of the individual as well as on the level of the market. So far these results have been mainly used to explain the existence of patterns in asset prices and to develop investment strategies that exploit them. While these applications of behavioural finance aim to understand the market, this chapter focuses on the individual investors and asks how to advise behavioural investors helping them make optimal investment decisions.
Keywords: investment advice, behavioral finance
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