The Psychology of the Stock Market

The Efficient Market Hypothesis argues that stock markets are rational - they take into account all relevant information, and incorporate it in an unbiased way. This talk will present evidence that stock prices are instead driven by human psychology. The market overreacts to some types of information yet underreacts to others; it is driven by emotions rather than purely economic fundamentals. The lecture gives profitable trading strategies that investors can use to exploit these biases.A lecture by Alex Edmans 22 SeptemberThe transcript and downloadable versions of the lecture are available from the Gresham College website: https://www.gresham.ac.uk/lectures-and-events/market-psychologyGresham College has been giving free public lectures since 1597. This tradition continues today with all of our five or so public lectures a week being made available for free download from our website. There are currently over 2,000 lectures free to access or download from the website.Website: http://www.gresham.ac.uk Twitter: http://twitter.com/GreshamCollege Facebook: https://www.facebook.com/greshamcollege Instagram: http://www.instagram.com/greshamcollege Support the show