Newsmakers

Meir Statman, Glenn Klimek Professor of Finance, was quoted in an article by Before It’s News that looked at Wall Street veteran Bob Farrell’s 10 Rules of Investment. In the piece, Professor Statman pointed to the ties between successes and losses, and strong feelings of optimism or fear.

An excerpt from the piece:
“As stated in Rule 5 it is emotions that cloud your decisions and affect your long-term plan.

‘Gains make us exuberant; they enhance well-being and promote optimism,’ says Santa Clara University finance professor Meir Statman. His studies of investor behavior show that ‘Losses bring sadness, disgust, fear, regret. Fear increases the sense of risk and some react by shunning stocks.’

The index of bullish sentiment shows that ‘greed’ is once again beginning to reach levels where markets have generally reached intermediate-term peaks.”

Find the full piece here »

Learn more about Professor Meir Statman »