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Leavey School of Business Santa Clara University

Newsmakers

Finance Professor Hersh Shefrin Head Shot

Finance Professor Hersh Shefrin Head Shot

Hersh Shefrin : Psychology of a Sell-Off : Chief Investments Officer

Professor Hersh Shefrin was quoted in an article about buying stocks during a sell-off.
Mario L. Belotti Professor of Finance Hersh Shefrin Head Shot

Hersh Shefrin, Mario L. Belotti Professor of Finance, was quoted in an article about buying stocks during a sell-off.

An excerpt from the piece:
Just three weeks into the year, US stocks have already fallen by more than 10%. The Dow dropped 249 points on Wednesday alone, and other indices across the world have crashed. Oil prices have plunged to less than $30 a barrel.

In other words, it’s a great time to think about buying, says Hersh Shefrin, finance professor at the Santa Clara University’s Leavey School of Business.

Shefrin is the author of numerous books and research papers in the area of behavioral finance. His latest book, Behavioral Risk Management, focuses on the psychological pitfalls at the root of disasters such as the 2008 financial crisis.

According to Shefrin, financial instability such as the ongoing sell-off is the result of what many behavioral economists refer to as “irrational exuberance”—investor enthusiasm that drives asset prices up to an unsustainable level.

Find the full article here.

Learn more about Professor Hersh Shefrin.

Hersh Shefrin, LSB Newsmakers, FNCE,