One common objection to the idea that share prices are driven by irrational investors is that, over time, they should be driven out of the market as the smarter money profits at their expense. Very often, however, this claim is wrong as a new paper by Ulrike Malmendier at the University of California at Berkeley shows. She describes how markets sometimes actually select in favour of irrational buyers.
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Economics
Why aren’t there more no-thought momentum investors?
There are good reasons not to have been a momentum investor - but also a bad one.
Chris Dillow