Hersh Shefrin : Greedy Investing : Morningstar
In an article highlighting the current stock market trends, Hersh Shefrin, Mario L. Belotti Professor of Finance, speaks on behavioral finance, particularly on the way that greed impacts the decisions made in the stock market. Shefrin distinguishes between the literal term of greed, wanting more, and the market sense interpretation of greed, anticipating rewards.
"In the market sense, we've come to associate greed to mean not so much wanting more than your fair share, but simply wanting more and setting high goals for your returns," Shefrin said. "It's not just getting the reward; it's anticipating the reward. And it really drives a lot of our behavior."
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