Stock Market Overreact

Does the Stock Market Overreact? Research in experimental  psychology suggest that, in violation of Bayes’ rule, most people tend to “overreact” to unexpected and dramatic news events. This study of market efficiency investigates whether such behavior affects stock prices. The empirical evidence based on CRSP monthly return data, is consistent with the overreaction hypothesis.

H/T noahpinionblog.blogspot.com

Stock Market Overreact by ValueWalk.com


Sign Up For Our Free Newsletter and like our Facebook page for latest news updates and leaks. ValueWalk’s Under The Radar Hedge Fund Ideas Is Only $49.99 (CLICK HERE! IT'S LIMITED TIME OFFER)